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Profiting from the Downturn: Bankruptcy Asset Sales
The recent turmoil in the financial markets has caused many businesspeople to actively seek out opportunities in undervalued or distressed assets. Buying assets out of a bankruptcy case represents one of the best ways to profit from financial distress. However, just as there is no typical bankrupt company, there is no typical asset sale in a bankruptcy case. Bankruptcy and distressed company investing, while potentially lucrative, is also complex and oftentimes contentious.
Bankrupt debtors seek to sell assets that range from entire businesses to individual pieces of equipment. Old, worn-out, or obsolete assets are as likely to be on the block as new, freshly purchased or produced materials. The range and quantity of assets sold by debtors means that opportunities abound for purchasers able to quickly and efficiently analyze the value of assets and close transactions. Spectacular tales of outrageous returns realized by so-called vulture investors abound. Less often told are the stories of would-be vultures spending significant time and money chasing deals that end up going nowhere. While it is true that the assets of bankrupt companies can often be purchased for literally pennies on the dollar, the bankruptcy asset purchase process can be challenging and the legal aspects of bankruptcy asset sales place severe demands on any would-be vulture.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.