Search Results for: "Creditor"
An ABC sale will be held for the assets of Enmotus, Inc., a tech company, at 5 p.m. PT, on December 5th, 2022.
Why Sell a Bankruptcy Claim? Imagine this: One of your customers sends you a notice stating it has filed for chapter 7 or chapter 11 bankruptcy protection rather than the payment for goods or services provided that you were expecting. In technical terms, you now have a “claim” against the “debtor,” but you aren’t sure you want to deal with the bankruptcy process and delay only to recover part of what you are owed. When a bankruptcy claims purchaser offers to purchase your bankruptcy claim from you for cash, you […]
FabExchange is a strategic partner for your divestiture, ABC, or wind-down projects. We provide auctions via consignment or can bid for full buyouts, valuation/appraisal services, cataloging for creditors, warehousing for short-cycle closures, and more.
A letter from a bank or other financial institution guaranteeing payment on account of debts owed to a creditor, in exchange for a fee. In the event the relevant debtor fails to make payment timely and in full, the bank is required to cover the full amount of the debt. Letters of credit may be used to protect vendors on account of important trade receivables, and are also commonly used by landlords to protect themselves in the event a tenant fails to pay rent. In bankruptcy proceedings, letters of credit […]
What rights do non-debtors have in the treatment of executory contracts? Learn about rejecting or assuming executory contracts as a non-debtor.
“Liens created under a security instrument that can arise on property from time to time, when property comes into existence or is acquired by the borrower. Under the Code, property acquired by the debtor or estate after the commencement of a case is not subject to any lien resulting from a security agreement entered into by the debtor prepetition. The rule’s important exception is set out in Section 552(b), which states that the prepetition lien still applies to “proceeds, products, offspring or profits” of the lender’s collateral, and if the […]
“The ultimate goal of the bankruptcy debtor. Discharge enjoins creditors from prosecuting most and sometimes all claims they may have with respect to the debtor’s prepetition obligations. In Chapter 7, debtors who are entities (rather than individuals) are not entitled to a discharge. In Chapter 11, discharge is available to both individuals and entities, and, generally, upon confirmation of a plan, prepetition claims against the debtor are discharged. Following confirmation, the debtor’s obligations to its creditors going forward are governed by the specific terms and provisions of the plan. Discharge […]
“A rule designed to prevent a secured creditor holding liens on two separate assets from liquidating the one asset that is subject to a second creditor’s lien, thereby unfairly leaving that second creditor with no collateral (or less collateral). The courts have historically given the concept of marshaling limited application, using it only when there are two or more secured creditors of the same debtor (the “common debtor” requirement), when the assets at issue are owned by that common debtor and when no prejudice will accrue to the senior creditor […]
New to the bankruptcy claims trading marketplace? Take a close look at documenting the purchase and sale of a bankruptcy claim.
TPLF represents billions in litigation investing. Litigation funding in the US rose to $2.8 billion last year — $17 billion worldwide. Read about ethical risks looming large.