Search Results for: "Creditor"
When are Ipso Facto Clauses and Golden Share Arrangements Enforceable in Bankruptcy? “Termination on bankruptcy” provisions—ipso facto clauses—are commonly used in many types of business contracts, providing for the termination of the contract (either automatic or at the non-debtor party’s election) upon the obligor’s filing of bankruptcy or the occurrence of similar events or conditions. However, generally, such clauses are not enforceable in the bankruptcy context, because as a matter of policy, debtors should be allowed access to the protections accorded to debtors under the Bankruptcy Code. In some types […]
Section 546(c) of the Bankruptcy Code and the Uniform Commercial Code permit a creditor to make a timely written reclamation demand to the debtor to recover goods sold in the ordinary course of the creditor’s business and received by the debtor within 45 days of bankruptcy. The written demand must be made within: (a) 45 days of the debtor’s receipt of the goods; or (b) 25 days from the petition date if debtor filed bankruptcy within 45 days of receiving the goods. The reclamation process is quite onerous, and creditors […]
AUCTION OF ASSETS OF ANTENNA INTERNATIONAL (US), LLC 1. Offer Deadline. July 14, 2021 at 5:00 pm Pacific Time. 2. NDA Deadline. July 6, 2021 3. Background. Provider of audio and multimedia guide services. The company specializes in the production and delivery of educational content such as audio tours, mobile apps, multimedia guides, podcasts, interactives and superior story-driven content including augmented reality and image recognition for the museum, art galleries, industrial factories, cultural and travel sectors. Antenna is the subject of an assignment for the benefit of creditors. 4. Process Overview. The prospective Assignee will provide a form asset purchase agreement (“APA”) to interested parties who have executed a non-disclosure Agreement (“NDA”) by the NDA Deadline. Letters of Intent in the form of a redline to the APA (containing the additional information as may be required by the prospective Assignee) must be received no later than the Bid Deadline. The winning […]
Section 341 of the Bankruptcy Code requires the U.S. trustee to hold a meeting of creditors (usually in the first 60 days after the petition date) to give creditors and the U.S. trustee the opportunity to ask the debtor questions about debtor’s conduct, assets, liabilities and any matter that may affect administration of the case. The debtor is required to attend and must answer these questions under penalty of perjury. While creditors are not required to attend §341 meetings, and they don’t waive any if they don’t attend, attendance is […]
What Companies Can Do to Protect Their IP Rights in Bankruptcy The Kodak case brought into sharp focus the treatment of intellectual property rights in bankruptcy. Inventor of the roll-film hand camera in 1888 and maker of the first digital camera, the iconic company licensed thousands of patents in its extensive patent portfolio, estimated at $4.5 billion. In 2012, Kodak filed bankruptcy and sold its assets—at apparent fire-sale prices—in bankruptcy court in New York. Sale of a patent portfolio of that size affects the rights of hundreds, if not thousands, […]
The filing of a bankruptcy petition automatically stays substantially all litigation, lien enforcement, or other activities that a creditor might undertake to enforce its claim against the debtor or its property. Section 362 of the Bankruptcy Code imposes the automatic stay; no court order is required. Moreover, the automatic stay applies in every bankruptcy case regardless of the chapter under which relief was sought and regardless of whether the case was voluntary or involuntary. Want to learn more? Read Dealing With Distress For Fun & Profit – Installment #10 – […]
The ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency In this installment, we take you on a tour of the time leading up to the filing of a chapter 11 case and the days that immediately follow. Mostly, we’re referring to first day motions. Before we dive into first day motions, however, you should understand that a debtor and its professionals are typically doing many other things immediately before and after they file a chapter 11 petition. For example: Continuing to explore alternatives to chapter 11 Negotiating with various parties […]
Section 501 of the Bankruptcy Code expressly authorizes a creditor to file a proof of claim. With limited exceptions, a prepetition creditor that wishes to be eligible to receive a distribution from a debtor’s bankruptcy estate must file such a proof of claim. Want to learn more? Read File Early and Often: Filing and Amending Claims in a Bankruptcy Case by Michael Schwarzmann and David Gottlieb.
Considerations for Companies in a Cash Crisis A liquidity crisis is a severe financial situation in which a company does not have enough cash or cash-convertible assets, which can lead to defaults and bankruptcy. Managing cash is critical when working to preserve or maintain solvency in order to maximize opportunities for a successful turnaround or corporate restructuring. Near-Death Liquidity Is Like a Melting Ice Cube Insufficient liquidity shrinks the range of options for a financially distressed business. The metaphor of a melting ice cube is often used to illustrate this […]
The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In Installment 5, we walked through the lifecycle of a hypothetical traditional chapter 11, and in Installment 6 we discussed key concepts you must comprehend in order to understand any chapter 11 case. Now we pull the camera back and turn our focus away from chapter 11 specifically, to look more broadly at the options available to a company (that is, a “debtor”) and to its various constituents (e.g., creditors and equity owners) when that company is experiencing financial distress so […]