AUCTION OF THE ASSETS OF S&K ACQUISITION CORP. AND S&K AIR POWER LEASING INC. Sale of Property: On September 18, 2019 at 10:00 a.m. at the offices of Commercial Recovery Associates, LLC, located at 205 West Wacker Drive, Suite 1818, Chicago, IL 60606, Robert Handler (the “Trustee/Assignee”), as Trustee/Assignee for the Benefit of Creditors of S&K Acquisition Corp and S&K Air Power Leasing Inc. (the “Companies”) will conduct an auction sale (the “Auction”) of the Companies’ tangible and intangible assets, consisting primarily of inventory, accounts receivable, property plant and equipment, office furniture and equipment, trade fixtures, customer information and marketing materials and brochures (“Sale Assets”), a list of which the Trustee/Assignee will make available to potential bidders. Terms and Conditions of Sale: The Sale Assets will be offered on an “AS IS” “WHERE IS” basis. The Company leases facilities in Mattoon, IL, Decatur, IL, Indianapolis, IN and Evansville, IN. The […]

Download a Printable PDF of this Article Some Financial Help for the Little Guy: President Trump Does Something Uncontroversial for a Change and Signs Four New Bankruptcy Bills into Law1 President Trump signed four bipartisan bankruptcy bills into law this past Friday, effecting the most significant changes to the Bankruptcy Code since 2005. The four bills, except the SBRA (defined below) became effective as soon as President Trump’s tiny hand signed them into law. The SBRA will become effective 180 days later. The new laws are: The Family Farmer Relief […]

The Myth of the Newspaper Being a Commercially Reasonable Notice

Is It Commercially Reasonable Notice, If No One Is Reading? You represent a secured lender. You are to assist your client in its exercise of rights under UCC §9-610 to sell its collateral after it has foreclosed upon the collateral. Or maybe you represent a chapter 11 debtor and are selling its assets under Bankruptcy Code §363. Or perhaps you are a federal equity receiver selling under 28 U.S.C §2001 et seq. Or you are an assignee for the benefit of creditors or state court receiver who is selling a […]

PUBLIC SALE UNDER ARTICLE 9 OF THE UCC OF COLLATERAL ASSETS INVOLVING SPRING MARKETPLACE, INC Certain assets of Spring Marketplace, Inc. (the “Company”) described below (the “Assets”) are to be auctioned at a public sale under UCC Article 9 by the secured lender Hoban Road Ventures LLC. The Assets consist of substantially all of the personal property of the Company, including the Company’s technology platform, which enables payment connected marketing and rewards solutions for merchants, and certain intellectual property. The time and place for the auction shall be as follows. Time: August 26, 2019, at 10:00 a.m. PT. Place: Offices of Sheppard Mullin, 333 South Hope Street, 43rd Floor, Los Angeles, CA 90071-1422, Attn: Ted Cohen (213 617 4237), counsel to the secured lender. Additional information may be gained by contacting Bruce Mitchell at (415) 525-2854 or [email protected] on or before August 19, including certain auction participation procedures and how […]

NOTICE OF PUBLIC SALE UNDER ARTICLE 9 OF THE UCC OF COLLATERAL INVOLVING FORTE AUTOMATION SYSTEMS, INC. 1. Executive Summary. This is a public notice regarding the public sale (the “Auction”) to the highest bidder of the collateral (the “Assets”) described in #6 below. The public sale will be held on July 31, 2019, 12:00 p.m. CST by the secured lender (“Secured Party”) who has a duly perfected first-priority secured creditor with respect to all present and future debts, obligations and liabilities of Forte Automation Systems, Inc. (the “Debtor”). 2. Loan Agreement. The Secured Party’s rights arose pursuant to that Loan Agreement dated as of May 14, 2014 (as amended, supplemented, or otherwise modified from time to time, the “Loan Agreement”) and the security interests granted by the Security Agreement dated May 14, 2014, by Debtor to Secured Party and the security interests granted by that Patent Security Agreement dated […]

A chapter 11 Plan sets forth the terms of a global novation among a debtor, its creditors, and its equity holders. A novation, in turn, is the act of replacing an obligation to perform with another obligation. So, a chapter 11 plan—once confirmed—replaces all of a debtors’ preexisting obligations with a set of new obligations, which are contained in the plan. There are several different types of plans. These include traditional chapter 11 and subchapter V chapter 11.

Immediately upon filing a bankruptcy petition, the person, entity or business becomes a debtor in the bankruptcy proceeding. The property of the debtor becomes the bankruptcy estate. In the case of a Chapter 11 bankruptcy, the debtor will become a debtor-in-possession and continue to administer the bankruptcy estate. Outside of bankruptcy, the term “debtor” is commonly used to refer to a company that is the borrower under a loan agreement or, more generally, to any party who owes another party (the other party being the “creditor”) a debt.

A written tour of business bankruptcy and its alternatives. This is the latest in the series, Dealing with Distress for Fun & Profit, which you can read from the beginning if you like. Our last two installments focused on the basics of confirming a plan, followed by specific plan confirmation issues to address with individual classes of creditors. In this installment, our fearless authors take on a discussion of a less frequently used, yet highly effective means of confirming plans–plan support agreements and restructuring support agreements. Overview of Restructuring Support […]

NOTICE OF PUBLIC SALE BY TRUSTEE/ASSIGNEE Sale of Assets: On May 16, 2019 ( at 11:00 a.m. (CDT) at the offices of Commercial Recovery Associates, LLC at: 205 W. Wacker Drive, Suite 1818, Chicago, Illinois 60606, Robert P. Handler, not individually, but solely as Trustee/Assignee (the “Seller”) for the Benefit of Creditors of The Roy Houff Company LLC and for the Benefit of Creditors of SJR Enterprises, LLC (collectively the “Company”) intends to sell at a public sale to the highest and best bidder (“Auction”) all of Seller’s right, title and interest in and to certain assets of the Company consisting of commercial delivery vehicles (collectively, the “Sale Assets”). The Sale Assets may be sold in bulk or by lot (the “Sale Lots”). Stalking Horse Offer and Terms and Conditions of Competing Bids: The Seller has received a written offer (“Purchase Offer”) for the Sale Assets in the amount of […]

Under Section 363(f) Free and Clear Means Free and Clear: A Case Study Bankruptcy sales of assets under section 363(f) can bring more cash into the estate in part because the purchaser takes the assets “free and clear” of the liabilities of the debtor-seller. The Ormet[i] case illustrates that the “free and clear” quality of assets in the hands of the purchaser after a section 363 sale, trump claims against the seller that are supported by very strong Congressional policies. Using union labor in Ohio, the Ormet Corporation and related […]