The American Bankruptcy Institute reported that total commercial filings during the first nine months of 2015 were 22,388, down 17% from the same period last year.
Commonwealth Biotechnologies said that its Plan of Reorganization from Chapter 11 bankruptcy proceedings has become effective April 15, 2013.
The Wall Street Journal noted that impatient lenders and the stubbornly weak economy are undermining the goal of the bankruptcy process by pressing for a fast trip to the auction block.
While the bankruptcy process is a useful tool for selling a company’s distressed assets, it can come at a significant cost. Lately, more often than not, many creditors, lenders and companies are opting to try an out-of-court approach. Lincoln International’s Joseph Radecki and Jason Solganick discuss the pros and cons to selling distressed assets both in the bankruptcy process and in out-of-court situations.
Speculating on “bad debt” dates back to colonial times when investors purchased individual claims at a fraction of their value against the strapped colonies with the hopes that the new government would eventually pay the claims in full. While much has changed since then, bankruptcy claims trading is still in practice by sophisticated investors with the acumen to estimate the timing and amount of payment. For sellers, the practice can significantly expedite liquidity, yet it is not with risk.
For this year’s Bankruptcy Issue, ABF Journal and the New York Institute of Credit are pleased to present Judge Kevin J. Carey’s perspective on the shifting dynamics and new realities occurring in Chapter 11 process for middle-market companies.
The year 2011 began on a hopeful note with signals that the U.S. economy was showing signs of strength in 2010. This, after a dismal and disappointing 2009. In the following article, Great America’s Michael Petruski returns to review the first three quarters of 2011 with a look at industries and markets where asset-based loans are directly affect by change and cyclicality.
There are numerous times during the course of a restructuring and financing that the situation can turn for the worse. Providing assurances and guidance to all parties involved will assist in a successful outcome even in the worst circumstances. Advising clients, lenders, customers and vendors is equally important in gaining common ground and resolution for a successful restructuring and financing.