Search Results for: "Creditor"
A written tour of business bankruptcy and its alternatives In our past few installments we’ve been approaching our topic in a more or less chronological manner, explaining what generally happens first, second, third, and so on. We think it useful to switch convention and spend this and the next few installments talking about things from the perspective of specific players. This time, we focus on the secured creditor. What/who is a secured creditor? Examples include (there are other possibilities): The holder of a real estate mortgage A bank with a […]
NOTICE OF PUBLIC SALE BY ORDER OF ASSIGNEE FOR THE BENEFIT OF CREDITORS OF INTEGRATED ORTHOPEDICS, INC D/B/A WABASH MEDICAL INC. 3717 NORTH RAVENSWOOD AVE., SUITE 217 CHICAGO, IL 60613 SALE OF ASSETS: Notice is hereby given that on January 29, 2016 at 2:00 pm, central time (the “Date of Sale”), in the offices of Rally Capital Services, LLC, 350 North LaSalle St, Suite 1100, Chicago, IL 60654, that Howard B. Samuels, not individually, but solely as Assignee for the Benefit of Creditors of Integrated Orthopedics, Inc., d/b/a Wabash Medical, Inc. (the “Company”), shall hold a public auction in accordance with Illinois common law to offer for sale in a single lot all of the Company’s right, title and interest in and to substantially all of its assets whether tangible or intangible, real or personal or mixed, owned or lease (including indirect and other forms of beneficial interest) wherever located and […]
JPMorgan Chase & Co. and others (“JPM”) lent $1.5 billion to General Motors Corporation (“Old GM”) under a term loan agreement (the “Term Loan Agreement”). JPM was the senior secured creditor of Old GM. Old Gm went into chapter 11 bankruptcy. Under the terms of the DIP financing approved by the bankruptcy court, proceeds of the DIP loan were used to pay $1.5 billion to JPM for its claims under the Term Loan Agreement. The unsecured creditors committee formed in the Old GM chapter 11 case (the “Committee”) wants that […]
In part one of our series on recharacterization, we discussed the elements of judicial recharacterization of loans as equity interests.[i] In part two of the series, we considered how debtors can “claw back” putative “loans” that they may have repaid years earlier because the “loans” were in fact equity investments and their repayment was invalid.[ii] In this finale of the series, we contrast recharacterization with equitable subordination, which is another means by which some creditors can seek to push ahead of others. Equitable subordination resembles recharacterization in that it permits […]
An assignment for the benefit of creditors (“ABC”) is a state-law means of business liquidation that, where it makes sense to pursue, usually takes less time and expense than a bankruptcy case. ABCs are available in many, but not all, states. They can involve judges or not, and can be set by statute or common law. An ABC is a trust agreement whereby the owner of a distressed company, the assignor, irrevocably transfers title, custody, and control of (usually all of) its assets to an impartial third party, the assignee, who is […]
In our last article[i], we discussed the judicial recharacterization of loans as equity interests. As we described, a court will recharacterize a lender’s debt claim as equity if it determines the “loan” actually was intended to be, and was treated by the parties as, an equity investment. Recharacterization is a powerful tool for creditors and trustees because, under the Bankruptcy Code’s priority scheme, debt claims (and all general unsecured claims) must be repaid in full before equityholders can receive any distribution on account of their (equity) interests. Because many, if […]
PUBLIC NOTICE OF UNIFORM COMMERCIAL CODE SALE NB SIERRA BLOOM, LLC NOTICE IS HEREBY GIVEN, that, pursuant to Section 5/1-101 et. seq. of the Illinois Uniform Commercial Code (810 ILCS 5/1-101); including but not limited to Section 9-610, of the Illinois Uniform Commercial Code, and, pursuant to the terms and provisions contained in that certain Membership Interest Pledge Agreement, dated as of February 7, 2017 (the “Security Agreement”) and executed by Todd Bryant (“Borrower” or “Debtor”) and Voshel Investments LLC (“Lender” or “Secured Party”), the collateral listed below will sell via auction at public sale (the “Auction”) on July 30, 2024 at 2:00 PM Central Daylight Time (the “Auction Date” or the “Sale”), at the offices of Rally Capital Advisors, LLC, 350 N. LaSalle Street, Suite 1100, Chicago, IL, in person and virtually hosted on Zoom and recorded, in accordance with the terms and conditions set forth below. The Secured Party is […]
A Match Made in Heaven? At first blush, cannabis and a legal practice like receivership might seem an unlikely match. Medical and recreational cannabis has steadily grown in acceptance and legalization over the past decade in the United States. However, there are times when cannabis businesses face insolvency and need a legal solution. As of right now, cannabis companies are not eligible for bankruptcy protection. In many cases, the groups they make payments to are also not eligible. This affects not only the companies but also the employees and their […]
NOTICE OF PUBLIC SALE OF COLLATERAL Pursuant to Section 9.610 of the Texas Business and Commerce Code (the Texas Uniform Commercial Code, the “UCC”), GROWSOUTH KESSLER, LLC, a Delaware limited liability company, having an address at c/o Civitas Capital Management, LLC, 1722 Routh Street, Suite 800, Dallas, Texas 75201 (herein “Mezzanine Lender”) will sell, at Public Sale, the Collateral (as defined below) pledged by GFCA OPPORTUNITY I GP, LLC, a Texas limited liability company (“GFCA”) and GFLP Entity I, LP, a Delaware limited partnership (“GFLP,” and together with GFCA, each a “Pledgor” and collectively the “Pledgors”), in accordance with the terms hereof and that certain Pledge and Security Agreement (the “Pledge Agreement”) dated as of June 21, 2019 executed by the Pledgors and GFCA OPPORTUNITY I, LP, a Texas limited partnership (the “Borrower”), and acknowledged and agreed to by the Mezzanine Lender. Collateral description The Collateral to be sold at […]
Special committees made up of independent directors can guide a company through the bankruptcy process without accusations of bias.