By now, it has become cliché to say that mall anchors and in-line specialty stores are in a state of contraction, that the digital sales channel is cannibalizing revenue that formerly went to the brick-and-mortar channel. “Retail restructuring” has almost become an oxymoron. With rare exceptions, every retailer bankruptcy ends in a liquidation sale transaction or series of transactions. However, the impact of such a liquidation on the value and continued viability of a retailer’s brand can vary widely based on the level of analysis and planning performed before product development and...

Many bankruptcy attorneys, financial advisors, and investment bankers who work in the distressed business industry believe that when interest rates increase to more historic levels the industry will enjoy a much-needed resurgence after five years of depressed engagement volume and fees. Clearly the Federal Reserve is in the process of gradually increasing the federal funds rate, a base rate that directly impacts—and to a large degree drives—all lending rates in the U.S.

However, anticipated interest rate increases may not create the significant surge of engagements for distressed...

Fraudulent conveyance is a legal concept involving the transfer of property for less than equivalent value to defeat a creditor’s ability to collect from its debtor. Whether a fraudulent conveyance has occurred is highly dependent on the facts and circumstances of the case.

For example, if someone sold his $500,000 house to his daughter for $100,000, he might be considered generous or senile, but not necessarily fraudulent. However, if the person perfected that same transaction right after losing a million-dollar lawsuit, then that transaction most likely would be considered a...

The nonprofit sector is an important component of today’s society. Included within this sector are most of the nation’s premier hospitals and universities; orchestras; theater and opera companies; all religious congregations; family and children’s services, neighborhood development, antipoverty, and community health services organizations; professional associations; labor unions; and social clubs.

The term “nonprofit” is something of a misnomer, because these organizations can earn profit, i.e., their revenue can exceed their expenses. What is prohibited is the distribution...

In distressed situations and workouts, lenders often trade forbearance and additional funding for concessions that make it easier to foreclose if the debtor commits new defaults or files a bankruptcy. Two recent Bankruptcy Court decisions refused to enforce provisions in forbearance agreements that aimed to block bankruptcy filings by the debtors.1  In both cases, the Bankruptcy Courts ruled that the appointment of the lender as a “special member” with veto power over a bankruptcy filing was void as contrary to federal public policy.

In Lake Michigan Beach,...

Distressed investors often spend hundreds of thousands, or even millions, of dollars conducting diligence, negotiating transaction documents, and participating in uncertain auction and legal proceedings. The process is not for the faint of heart. A distressed investor may end up with the proverbial goose egg after spending substantial time and resources because of different variables.

For example, an investor might decide to walk away based on what it learns from due diligence or, after deciding to submit a bid and participate in an auction, it might lose to a higher bidder. Chapter...

The Polsinelli | TrBk Healthcare Services Distress Research Index equaled its high from the previous quarter in Q3 2016 and has now reached record levels in three successive quarters. Compared to the same period one year ago, the index is up 65 points, indicating that the high level of distress in the healthcare services industry continues.

The Chapter 11 Distress Research Index fell by five points in Q3 from Q2 but remained almost five points higher than the same period one year ago. The Chapter 11 index has declined 17 times and increased six times compared to the prior quarter,...

One of the things that made Peter L. Tourtellot, CTP, so special was that he made time for everybody, no matter how busy he was. His passing on July 16 came as a shock to a lot of us. His contributions and impact on TMA are so far-reaching, it is hard to quantify them all.

In sports, a microcosm for our lives, you so often hear how the contributions and sacrifices of earlier generations have allowed current players to reap the benefits. Where would today’s professional athletes be without Curt Flood, whose refusal to accept a trade following the 1969 season was a catalyst that...

The Polsinelli|TrBK Chapter 11 Distress Research Index increased by nearly 8 points, to 52.68, in Q2 2016 versus the previous quarter and has now increased for five of the last six quarters. Compared with the same period one year ago, the index has risen nearly 15 points, or approximately 39 percent. However, compared to its benchmark period of the fourth quarter of 2010, the index remains down by more than 47 percent.

Q2 2016 marks the second time, and the second consecutive quarter, that all three Polsinelli|TrBK indices—the Chapter 11 Distress Index, the Real Estate Distress...

The Polsinelli | TrBk Distress Indices for the first quarter of 2016 showed a 30-point jump in the Healthcare Services Distress Index, pushing the measure to its highest level since the inception of the indices. For the first time since 2010, all three measures included in the Distress Indices increased in the same period, suggesting that business distress among mid-market and bulge-bracket companies is climbing in the U.S. for the first time since the Great Recession in 2008-2009. 

The Chapter 11 Distress Index has increased in four of the last five quarters and is up by 2.5 points...