Category: 2010

Court of Appeals Rules Unsecured Creditors May Claim Post-Petition Attorneys’ Fees

In the case of Ogle, Liquidating Trustee of the Agway Liquidating Trust v. Fidelity & Deposit Co. of Maryland, The United States Court of Appeals for the Second Circuit held on November 2009 that a creditor was entitled to its post-petition legal fees incurred on a pre-petition indemnity agreement. In affirming the lower courts, the Second Circuit explained that the Bankruptcy Code (Code) “interposes no bar to recovery.”

The True Face of Dilution (Part 2 of 3)

Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base formula adequately protects an asset-based lender. ABF Journal’s coverage on field examinations continues with the second part of a three-part series.

There Has to be a Better Way

Preparing an involuntary bankruptcy proceeding, on the other hand, can lead to useful information about the debtor and its other creditors, may provide the impetus necessary to convince the debtor to reach a little deeper into its pocket. And, taking the steps necessary for preparing the petition will prepare you for that option, should it become desirable and necessary.

The Rise of the Quickie Bankruptcy

As the pace and timeframe with which Chapter 11 filings are processed becomes condensed, commentary — both good and bad — has focused on the role of the prepackaged bankruptcy. Kevin Lombardo says that while prepacks have their place, firms must “tread lightly” on this insolvency path that’s gaining in popularity.

When the Floodgates Burst

Business Continuity planning is an integral and important part of running any type of company. The process is not complicated, however it is time consuming and requires proper project management. It is a good idea to get outside help with the project design and management, unless your company possesses both the expertise and time required to create a robust and effective BRP.