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 In re Gol Linhas Aéreas Inteligentes S.A. Judge Martin Glenn recently held that a “lockup” provision in certain settlement agreements was unenforceable under section 1125 of the Bankruptcy Code because settling creditors...more
Much has been written about how to calculate the appropriate interest rate for the deferred cash payments a debtor may propose to pay to a rejecting secured creditor under a “cramdown” Chapter 11 plan to meet the “fair and...more
The Sixth Circuit’s recent decision in Digital Media Solutions v. South Univ. of Ohio, 59 F.4th 772 (6th Cir. 2023) provides a cautionary tale about the limitations of federal equity receiverships as a restructuring tool. It...more
8/22/2023
/ Appeals ,
Class Action ,
Corporate Officers ,
Court-Appointed Receivers ,
Creditors ,
Debt Restructuring ,
Directors ,
Nonprofits ,
Quasi In Rem Jurisdiction ,
Receivership ,
Remand ,
Reversal ,
Settlement ,
Subsidiaries ,
Third-Party Release Agrements
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
In a recent case — In re Optim Energy, LLC — the Delaware Bankruptcy Court denied an individual creditor’s request to pursue the subordination or recharacterization of the claims of secured lenders who were also the debtors’...more