Search Results for: "Creditor"
“The lender is oversecured to the extent of its equity cushion, a generally enviable position in bankruptcy until the debtor uses the lender’s oversecured status as an excuse to merely accrue and not pay the oversecured creditor accruing interest and attorneys’ fees on its claim while the case is pending. Many argue that it is unnecessary and even illegal to make any payment to the lender after commencement of the case and that, instead, interest and fees should accrue until the equity cushion is exhausted. Others argue that the equity […]
“A seller’s right to recover possession of goods sold to an insolvent buyer under the Uniform Commercial Code or common law. The right of reclamation survives, in modified form, in the debtor/purchaser’s bankruptcy filing. Under most state laws the demand for reclamation must be in writing and made within 10 to 20 days of the debtor’s receipt of the goods. The seller’s state-law right of reclamation continues in bankruptcy, as modified under Section 546(c), and the seller may reclaim goods received by the debtor while the debtor was insolvent, if […]
A UCC Sale will be held for the assets of Illini Hi-Reach, Inc. and Illini-Wisc, Inc on September 30, 2022 at 10am CT.
The assets of a confidential designer furniture company will be sold in an ABC sale on October 13, 2022 at 5:00 pm PT.
In this installment we introduce you to the UCC generally, focusing on Article 9 to illustrate its importance in the context of business distress.
An unsecured claim held by a secured creditor, the amount of which is the portion of the secured creditor’s total claim amount that is not secured by collateral (i.e., the collateral is not worth the total value of the secured creditor’s claim).
A failure—typically by a borrower—of a party to honor one or more of its obligations to another—typically a secured creditor—under the terms of an agreement between parties. In loan transactions, “events of default,” are likely to be specifically defined by the parties to a loan agreement. The occurrence of an event of default will give rise to the ability of the non-defaulting party to exercise various remedies against the defaulting party, which likely include the ability to foreclose, repossess, and liquidate certain collateral.
These 3 preference action defenses options involve a detailed analysis of historical business interactions and utilization of records to support your transactions.
A Series on the ABCs of ABCs, when it comes to claims there’s a plethora of them. From secured to unsecured, to bankruptcy and trade. Read all the basics in this installment of Dealing with Corporate Distress. This Installment covers how to protect you claim in a bankruptcy case.
“Liability imposed on the purchaser of assets for claims against the prior owner of the assets. The courts originally developed this doctrine to protect victims of personal injury torts, especially future tort claimants, where there has been a “de facto merger” or “mere continuation” of the old business by the new owner of the assets. There has been some recent extension, though less so than is generally thought, of this doctrine to include debts to providers of goods, services, or capital (lenders) to the old business. Purchasers in section 363 […]