Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
With the ongoing shutdown of tens of thousands of businesses causing massive unemployment, bankruptcy filings will inevitably increase substantially. The Bankruptcy Code is designed to facilitate the sale of assets. The Bankruptcy Code provides a method for assets to be sold “free and clear” of liens and claims so long as any creditor with a lien on the asset to be sold is paid in full, the lien is in bona fide dispute or the secured creditor consents to the sale. (Bankruptcy Code section 363(f) provides that the debtor or trustee may sell property free and clear of any interest in such property of an entity other than the estate, only if: 1) applicable non-bankruptcy law permits sale of such property free and clear of such interest; 2) such entity consents; 3) such interest is a lien and the price at which such property is to be sold is greater than the aggregate value of all liens on such property; 4) such interest is in bona fide dispute; or 5) such entity could be compelled, in a legal or equitable proceeding, to accept a money satisfaction of such interest.) There is no efficient market, however, 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. For instance, I often identify bankruptcy asset sales for my investor clients who were otherwise unaware of sale opportunities. This paper identifies ways in which investors may more easily discover bankruptcy asset sales.
*May exclude premium content
By Danielle C. Lesser
Malls across America, long suffering even before the rise of COVID-19, are now forced to confront a wave of store closures that will inevitably result from current factors. Troubled retailers will, without doubt, seek to close their failing mall locations. To stem these efforts, landlords have applied to courts for injunctive relief to force stores to remain open and operating through the enforcement of the “continuous operations provision” found in mall leases.
By Andrew C. Kassner and Joseph N. Argentina Jr.
The pandemic has spurred analysis of legal issues as businesses grapple with their respective relationships with both private and public entities. In this article, the authors examine Section 525 of the Bankruptcy Code — the anti-discrimination section, and its implications during COVID-19.
By Mark S. Melickian and Hajar Jouglaf
General assignments for the benefit of creditors (ABCs) have been and continue to be a popular business liquidation device for the orderly wind down of corporations, limited liability companies, and even nonprofit corporations and general partnerships. Just as in bankruptcy, an ABC can also be used to facilitate a going-concern sale of the debtor’s assets to a third-party.
By Robert W. Dremluk
The general purpose of Subchapter V was to streamline the Chapter 11 bankruptcy process for small businesses and individuals engaged in business to administer their bankruptcy estate in an efficient and less costly manner.