Just as a debtor selling real estate in a bankruptcy proceeding engages a bankruptcy attorney to handle legal work and a financial advisor for management consulting and financial reporting services, the debtor should also engage a real estate advisor who specializes in selling assets in bankruptcy...
As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Congress amended how certain claims for the sale of goods would be treated in Chapter 11 cases by establishing a new category of administrative priority claim under Section 503(b)(9) of the U.S. Bankruptcy Code...
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...
For a distressed company running low on capital, an investment from insiders may represent a last best hope for survival. Insiders may be willing to risk throwing good money after bad for a chance to save the company even when any third party would stay safely away. Insiders of a failing company...
Payment of professionals in Chapter 11 is a complex process intended to ensure transparency and fairness. It can also be a maze filled with traps for the unwary. Professionals for the estate are required to have their engagement approved by the court at the beginning of the case and then to have...
