Search Results for: "Creditor"
Section 503 of the Bankruptcy Code grants payment priority to “administrative expenses” with the intent of supporting debtor reorganization by encouraging claimants to do business with the debtor. Among them is a §503(B)(9) claim – an administrative expense claim for the value of any goods received by the debtor within 20 days of bankruptcy; and sold to the debtor in the ordinary course of business. How does a creditor qualify for a §503(B)(9) claim? Creditor must show it: (a) sold goods – not services – to the debtor; (b) within […]
The Jevic case upheld the absolute priority rule, but it did not prohibit structured dismissals. How are structured dismissals affected post-Jevic?
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.
A creditor may seek appointment of a chapter 11 trustee in replacement of the debtor in possession, but there are special considerations to make first.
Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question Robin T. wrote in asking, I own a small retail chain that has been struggling. I hired a lawyer to negotiate with my creditors, and she told me I should speak with my accountant about the possible tax consequences of getting my creditors to forgive some of the company’s debt. The IRS can’t be that cruel, can it? Answer. Indeed […]
ASSIGNEE AUCTION OF THE ASSETS OF DB CYBERTECH, INC. DB CyberTech, a Delaware Corporation f/k/a DB Networks, Inc., a Delaware Corporation, Inc. (“DB CyberTech”), a cyber security company, has ceased operations and executed an Assignment for the Benefit of Creditors in favor of DB Cyber ABC, a limited liability company, as assignee (the “Assignee”) under California law on July 29, 2021. The Assignee intends to sell at auction all property of DB CyberTech as detailed below (the “Auction Assets”). All bids must be received by no later than 5:00 pm (prevailing Pacific time) on September 17, 2021. Assets to be Sold: The Auction Assets include all the Assignee’s right, title and interest in the following: Trademark #5,784,830 registered 6/25/2019 for “DB CyberTech” Trademark #4,351,865 registered 6/11/2013 for “DB Networks” Trademark #5,250,014 registered 7/25/2017 for “DB Networks” stylized with a shield Trademark #5,867,678 registered 3/14/2019 for “Aspecto” Patent Application PCT/US20/17064 Automated […]
Bankruptcy Reporting Requirements Before and During Chapter 11 One of the central principles of bankruptcy is that a debtor should have the benefit of a “fresh start.” However, to accord such relief, the Bankruptcy Code, Bankruptcy Rules, and case law require transparency from the debtor and other parties in interest. As such, strict compliance with bankruptcy reporting requirements is a primary responsibility of a debtor in possession (DIP). Courts expect a DIP to keep proper records and file required disclosures and reports in a timely manner. A DIP’s failure to […]
NOTICE OF ARTICLE 9 SALE RE MiCORP CUSTOM AUTO & TRUCK, LLC – AUGUST 20th BID DEADLINE 1. Public Sale. The Secured Creditors, through the Agent (as each is defined below) will sell the Debtor’s (as defined below) right, title and interest in the Assets (as defined below) to the highest qualified bidder(s) in public (the “Public Sale”) as follows: 2. Secured Creditors. The “Secured Creditors” are Canal Capital Partners III, LP, Canal Capital Partner III – A, LP, and Douglas Tansill. 3. Debtor. The “Debtor” is MiCorp Custom Auto & Truck, LLC. 4. Sale Date. The Public Sale is scheduled for August 23rd, 2021 at 11:00 a.m. Eastern Time and will be conducted via Zoom. The Bid Deadline (as defined below) is August 20th, 2021 at 4:00 p.m. Eastern Time. 5. Assets. The “Assets” consist of all of Debtor’s Accounts, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Fixtures, General […]
1. Each newsletter of DISTRESSED DEAL DATA™ puts certain words, in each deal description, in bold. What is the significance of that bolding? Our researchers use bolding for two purposes: (a) to identify a key deadline, when it is known; and (b) to indicate the “category” of the deal. 2. What is meant by “category” of deal? First, not every deal description describes an actual,live deal. Many deal descriptions describe data we are aware of that suggests a deal may happen- whether presently or in the near future. In other […]
Examining the “Fiduciary for Hire” and the NRA’s Bad Faith Bankruptcy “When in doubt, mumble, when in trouble, delegate, when in charge, ponder.” – James H. Boren, When In Doubt, Mumble: A Bureaucrat’s Handbook (1972) Business entity debtors in chapter 11 cases come in all shapes and sizes, with varying degrees of integrity and competence in managing those entities. Debtor’s professionals, while arguably also fitting those parameters, must play the cards they are dealt—usually in financially urgent circumstances—and make real-time strategic decisions with real-world consequences. When questions arise as to […]