Like a professional fee carve-out, secured creditors may also agree to a carve-out for unsecured creditors to appease the court and creditors’ committee.
Who makes the top of the list in the order of priority? See where you fall based on the absolute priority rule.
Although commonly used interchangeably, recharacterization and equitable subordination have different purposes and effects on order of priority of claims.
Explore whether a debtor can file chapter 11 reorganization bankruptcy to evade a court-ordered receivership.
An Article 9 sale allows a creditor to sell its collateral to a third party in a private or public sale without the need for judicial proceedings.
Let’s take a look at bankruptcy from the secured creditor’s perspective (they play a large role in a distressed business situation). Read about what a secured creditor should know when a business files for bankruptcy.
Why Sell a Bankruptcy Claim? Imagine this: One of your customers sends you a notice stating it has filed for chapter 7 or chapter 11 bankruptcy protection rather than the payment for goods or services provided that you were expecting. In technical terms, you now have a “claim” against the “debtor,” but you aren’t sure you want to deal with the bankruptcy process and delay only to recover part of what you are owed. When a bankruptcy claims purchaser offers to purchase your bankruptcy claim from you for cash, you […]
A Series on the ABCs of ABCs, when it comes to claims there’s a plethora of them. From secured to unsecured, to bankruptcy and trade. Read all the basics in this installment of Dealing with Corporate Distress. This Installment covers how to protect you claim in a bankruptcy case.
What are the legal remedies available under Article 9 of the UCC to a lender whose loan is secured by the personal property of a borrower who is in default? How can these legal remedies can be implemented in practice?
When a borrower defaults on its loan agreements, a lender may, among other options, sue to foreclose on its collateral and collect from the borrower. The lender, however, may instead agree to amend the loan documents or enter into a loan forbearance agreement. If the borrower can convince the lender that, within a reasonably short time, it can cure the defaults and perform or observe such new conditions as the lender may require in exchange for waiting, a loan forbearance agreement memorializing such new arrangements may be entered into by […]