What’s Your Interest in Interest? Lenders’ Rights to Post-Confirmation Default Rate Interest

Lenders often set a default rate of interest in a loan agreement as protection if the borrower defaults. They expect the courts to honor the rate, but it doesn’t always happen. Attorneys Jeffrey Wurst and Suzanne Mourad explain how conflicting clauses in the bankruptcy code often allow the borrower to roll back the interest rate.

Retail Bankruptcy Cases: A Volatile Sector Faces More Turbulence

It’s no secret that brick-and-mortar retailers are struggling to stay in business. Stephen Selbst examines the factors that have created the current retail crisis. He explains why Chapter 11 does not effectively give retailers an opportunity to restructure and suggests avenues that lenders can take to protect themselves from exposure.

Sit Down, Shut Up and Mind Your Own Business: Controlling Subordinate Lenders in Bankruptcy

As the senior lender, your rights to recoup your funds should be top priority during bankruptcy proceedings. But those pesky subordinate lenders often get in the way. Rocco I. Debitetto explains the best way to craft an intercreditor agreement that forces subordinate lenders to “sit down, shut up and mind their own business” until you get paid.

What’s in Your Intercreditor Agreement? For First Lien Lenders, the Devil’s in the Details

For many years, bankruptcy courts failed to enforce intercreditor agreements because the parties involved were not in bankruptcy. Courts today are enforcing these agreements strictly according to their text. Failure to note the precise wording of an intercreditor agreement can trip up a first lien lender and give the second lien lender the upper hand during bankruptcy proceedings.

March 2016

March 2016
Bankruptcy
Vol. 14, No. 2

Claims Trading Warps the Bankruptcy System Honest Debtors Are Hampered by “Self-Interested Meddlers”

The Bankrupcty Code was designed to enable honest debtors to reorganize and get a fresh start. But the growing number of claims traders purchasing these debts from lenders is warping the process, contends Kenneth A. Rosen, a nationally recognized bankruptcy expert.

The Ten Commandments of Chapter 11: Thou Shalt Invite Failure by Ignoring These Rules

Using the pages of the ABF Journal in place of two tablets of stone, Attorney Rocco Debitetto hands down the Ten Commandments of Chapter 11.

Uptick in Restructurings on the Horizon in 2016

According to AlixPartners’ 10th annual North American Restructuring Experts survey, 2016 may see an uptick in restructurings and corporate bankruptcy filings.

Italy Amends Bankruptcy Act to Facilitate Restructurings

Law firm Paul Hastings said Italy’s parliament finally passed a law decree amending various provisions of the 1942 bankruptcy act, the civil code and code of civil procedure.

The Quick Sale Devolution of Chapter 11: A Call to Amend Bankruptcy Code Sale Provisions

Lowenstein Sandler’s Ken Rosen addresses section 363 of the Bankruptcy Code, a provision that permits a bulk sale of all debtor assets. He asserts that rapid sales deprive debtors of the ability to utilize the tools of Chapter 11, which is not what Congress intended.