Category: Bankruptcy

Ready for Prime Time … Receiverships Grow in Scope and Popularity

The legal restrictions and market perception surrounding a bankruptcy can make a turnaround a difficult affair, especially in the current economy. Receivers were once appointed mostly to handle distressed real estate deals, but Chris Tierney of Hays Financial Consulting argues that experienced receivers have the leeway and the acumen to turnaround almost any business.

Fast-Track Business Bankruptcy Cases … Expedited or Steamrolled?

The post-BAPCPA bankruptcy world places a premium on speed. And since time is money — particularly in the bankruptcy process — this dynamic is of little surprise. But fast-track bankruptcy cases aren’t without institutional or individualized costs. In the following feature, two restructuring professionals look at four recent fast-track cases to determine “just how fast is too fast?”

Iconic Name Survives Thanks to a Well-Executed §363 Sale

Given the long list of costly, contentious and ultimately unsuccessful retail bankruptcies, much attention has been given to the particulars surrounding Filene’s Basement’s Chapter 11 proceedings that culminated with a §363 sale to Syms Corp. What follows is a behind-the-scenes look at these events that bucked a trend in more ways than one.

The Not-So-Secured Right to Credit Bid

On March 22, 2010, the Third Circuit Court of Appeals, which covers the districts of New Jersey, Pennsylvania and Delaware, issued a decision that is of ground breaking importance to secured lenders. This decision arises out of the Philadelphia Newspapers, LLC1 bankruptcy case pending in the Eastern District of Pennsylvania and seriously affects the right of secured lenders to credit bid in a sale effected in connection with a plan of reorganization.

CIRAs: Well Equipped for Economic Crisis

Current economic conditions have created great demand for services of financial experts trained in the area of insolvency and restructuring. Rendering financial advisory services in the business turnaround, restructuring and bankruptcy practice areas requires both specialized knowledge and relevant experience.

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.

Do Quick-and-Easy Section 363 Sales Always Yield the Best Return on Collateral?

Because legal fees and other costs can stack up during a lengthy Chapter 11 reorganization, some asset-based lenders might welcome the trend toward §363 sales, reasoning that quicker sales ultimately will translate into maximum return on collateral. In reality, however, §363 is anything but a one-size-fits-all solution.