Directors’ decisions face intense scrutiny during times of financial distress. A structured approach can protect stakeholder value and minimize liability....more
Conducting an asset sale through a bankruptcy auction — a Section 363 sale — is an effective and common M&A tool for a distressed company.
In anticipation of a 363 sale, a Chapter 11 debtor typically tries before its...more
2/12/2025
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Competitive Bidding ,
Creditors ,
Debt Restructuring ,
Debtors ,
Distressed Debt ,
Reorganizations ,
Sale of Assets ,
Section 363
When a company enters bankruptcy, its assets are often sold to the highest or best bid. Secured lenders — those who have perfected liens on the company's assets — have a unique advantage under Section 363(k) of the Bankruptcy...more
1/15/2025
/ Collateral ,
Commercial Bankruptcy ,
Credit Bids ,
Creditors ,
Debt ,
Debtors ,
Lenders ,
Liens ,
Loans ,
Perfected Security Interest ,
Section 363 ,
Secured Debt
In the high-stakes world of bankruptcy asset acquisitions, Bankruptcy Code Section 363 provides a powerful mechanism for purchasing assets “free and clear” of most claims, liens, and encumbrances. Success in these...more
The growth in private credit (lending by institutions other than banks) has been one of the most significant capital market developments of the last decade. It is estimated that the size of the private credit market was...more
8/13/2024
/ Capital Markets ,
Change of Control ,
Debt Market ,
Debt Restructuring ,
Financial Distress ,
Intellectual Property Protection ,
Investment ,
Investors ,
Lenders ,
Non-Bank Lenders ,
Private Equity ,
Underwriting
A bankruptcy sale is an opportunity to potentially acquire assets at distressed pricing. A bankruptcy sale also presents prospective bidders with a level playing field to conduct due diligence, submit a bid, and compete...more
5/22/2024
/ 363 Sales ,
Acquisitions ,
Assignments ,
Assumption of the Risk ,
Auction ,
Bankruptcy Code ,
Bids ,
Business Assets ,
Commercial Bankruptcy ,
Competitive Bidding ,
Debtors ,
Executory Contracts ,
Regulatory Requirements ,
Sale of Assets ,
Section 363
In a decision of first impression regarding whether certain digital assets are property of a bankrupt debtor’s estate (attached here), Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District...more
Lenders seeking to challenge controversial, often punitive, liability management transactions scored a recent win in Boardriders. The transaction at issue, a priming uptier exchange transaction favoring certain...more
Top 10 Questions About Subchapter V Reorganization -
Reorganization under Chapter 11 of the Bankruptcy Code offers powers and benefits that are simply not available in out-of-court restructurings. Chapter 11...more
4/28/2021
/ Bankruptcy Code ,
Chapter 11 ,
Commercial Bankruptcy ,
Coronavirus/COVID-19 ,
Creditors ,
Debt Restructuring ,
Debtors ,
Early Stage Companies ,
Emerging Growth Companies ,
Relief Measures ,
Reorganizations ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA) ,
Startups ,
Trustees
Board Decision Making in a Down Cycle -
The last several months have been unprecedented in terms of how quickly and drastically business environments have changed. With widespread uncertainty and financial distress...more
8/26/2020
/ Board of Directors ,
Coronavirus/COVID-19 ,
Corporate Governance ,
Corporate Restructuring ,
D&O Insurance ,
Duties & Responsibilities ,
Financial Distress ,
Independent Directors ,
Liquidity ,
Personal Liability ,
Special Committees
BUSINESS UNUSUAL -
COVID-19 poses unprecedented global public health and humanitarian challenges. Economically, it marks the end of a growth-fueled credit cycle. It’s been replaced by volatility, uncertainty and...more