Steven D. Jerome and Emily Gildar Wagner provide a deep dive on the tools secured creditors have at their disposal in Subchapter V bankruptcy filings, specifically outlining considerations around the 1111(b) election.
As COVID-19 continues to cause incredible stress on healthcare organizations, Michael Sandnes of EisnerAmper explains how CEOs must create a solid game plan and demonstrate flexibility both during and after a Chapter 11 filing.
Chapter 11 filings are being used as ways to Implement 363 sales more so than in previous decades, according to Juanita Schwartzkopf, who dives into the 363 sales process and becoming a stalking horse bidder.
According to Epiq, continuing the trend from August, commercial Chapter 11 filings in September were up 78% compared with September 2019, with 747 new filings vs. 420 during September of last year.
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.