While things worked out for vendors who did not file a UCC-1 in the Sports Authority Chapter 11, you may not be so lucky.
Never assume that it is not necessary to properly perfect a consignment arrangement by filing a...more
2/24/2022
/ Article 9 ,
Bankruptcy Code ,
Chapter 11 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Inventory ,
Liens ,
Sports Authority ,
Uniform Commercial Code (UCC) ,
Vendors
One of the fundamental principles of corporate law is that the owners, directors and officers of a corporate entity generally are not personally responsible for the entity’s debts. Without this insulation from personal...more
1/26/2022
/ Creditors ,
Employee Retirement Income Security Act (ERISA) ,
Family Businesses ,
Fiduciary Duty ,
Financial Statements ,
Fraudulent Conveyance ,
Insolvency ,
Loans ,
Personal Liability ,
Secured Debt ,
Shareholders ,
Trust Funds
Actions Against Directors, Officers Common After Chapter 11 Bulk-Asset Sales Leave Nothing to Recover-
In the event of Chapter 11 Bankruptcy, creditors often look to recover funds by individually targeting directors or...more
The issue of venue reform has been debated for many years and is again being revisited in light of the expected surge in bankruptcy cases in the wake of the COVID-19 pandemic and certain recent large Chapter 11 filings,...more
As we enter year two of the COVID-19 pandemic, the number of new Chapter 11 cases being commenced has slowed to a trickle. But the cycle will turn again. There are always companies that lose a major customer, fail to adapt to...more
Recently, a materially revised Chapter 11 restructuring plan of reorganization was negotiated, in part, by a purportedly independent special committee of the board of Purdue Pharma LP.
Originally published in Law360 July...more
Expedited Chapter 11 bankruptcies are on the rise because they save money and because key constituents such as bank lenders and bondholders recognize that the more time that a debtor spends in Chapter 11, the more likely the...more
As more companies file for Chapter 11 amid the pandemic, expect to see more filings focus on reducing labor, legacy and environmental costs as key to a successful reorganization.
This theme will come from debtor management...more
The Federal bank regulators which supervise banks have made a statement encouraging workouts necessitated by the coronavirus. Loans which would otherwise be classified as TDRs (Troubled Loan Restructurings) will not have to...more
Now is the time to be extra vigilant and to carefully watch over the creditworthiness of your customers. Assume that all of your customers are in, or soon will be in, financial distress. If they have not called you yet to...more
At the moment, the bankruptcy court may be an unfriendly place for impatient lenders.
As the United States and much of the world reel from the coronavirus pandemic, many businesses’ revenues have been shut off (or close to...more
4/7/2020
/ Borrowers ,
Chapter 11 ,
Commercial Bankruptcy ,
Coronavirus/COVID-19 ,
Creditors ,
Debtors ,
Financial Distress ,
Landlords ,
Lenders ,
Tenants ,
Unsecured Debt
A bankruptcy trust for creditors (including former workers and trade vendors) who lost significant sums of money in the Toys “R” Us Inc. (TRU) bankruptcy sued former Chief Executive Officer David Brandon, several other...more
Some problems in the Chapter 11 bankruptcy process — namely, how unsecured creditors committees and their professional advisers are being selected — have emerged in recent years. Moreover, they are only getting worse.
The...more
Successful Chapter 11s for retailers have become few and far between. Sears, Toys "R" Us, Barneys New York, Forever 21, Coldwater Creek, Fred's, Fairway and A&P are just a few examples of recent retail...more
3/5/2020
/ Administrative Bankruptcy Claims ,
Bankruptcy Reform ,
Commercial Bankruptcy ,
Corporate Restructuring ,
Creditors ,
Distributors ,
Financing ,
Liquidation ,
Retailers ,
Risk Assessment ,
Risk Mitigation ,
Sears ,
Toys R Us ,
Vendors
A company commences a Chapter 11 bankruptcy case, obtains “debtor in possession” financing and then asks its vendors for more unsecured credit because (according to the debtor) the debtor just got lots of new financing and...more
3/4/2020
/ Administrative Bankruptcy Claims ,
Chapter 11 ,
Commercial Bankruptcy ,
Credit ,
Creditors ,
Debtors ,
Debtors-in-Possession ,
Financing ,
Lenders ,
Proof of Claims ,
Reorganizations ,
Reservation of Rights ,
Secured Debt