With the number of corporate bankruptcy filings in the retail industry nearly doubling in 2016 and continuing to climb in 2017, 1 retailers and their legal and financial professionals are faced with innumerable challenges in navigating the corporate bankruptcy process successfully in a streamlined...

Lenders and borrowers alike benefit from reduced risk in loan transactions. One way lenders can reduce their risk is by lending to bankruptcy remote special purpose entities (SPEs), which are typically limited liability companies (LLCs) structured to limit their right to file bankruptcy. The...

Chapter 11 bankruptcy cases generally conclude in one of three ways: a plan, conversion to a liquidation under Chapter 7, or dismissal. Classically, dismissal restores the debtor to its financial condition as of the date it filed bankruptcy, but “for cause” Bankruptcy Courts can order a “structured...

For more than a decade, make-whole premiums, also referred to at times as prepayment premiums, prepayment fees, yield maintenance premiums, or similar terms, have been a common feature in bond indentures and credit agreements. The basic purpose of a make-whole premium is to compensate the investor...

Just as a debtor selling real estate in a bankruptcy proceeding engages a bankruptcy attorney to handle legal work and a financial advisor for management consulting and financial reporting services, the debtor should also engage a real estate advisor who specializes in selling assets in bankruptcy...

As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Congress amended how certain claims for the sale of goods would be treated in Chapter 11 cases by establishing a new category of administrative priority claim under Section 503(b)(9) of the U.S. Bankruptcy Code...

In distressed situations and workouts, lenders often trade forbearance and additional funding for concessions that make it easier to foreclose if the debtor commits new defaults or files a bankruptcy. Two recent Bankruptcy Court decisions refused to enforce provisions in forbearance agreements that...

For a distressed company running low on capital, an investment from insiders may represent a last best hope for survival. Insiders may be willing to risk throwing good money after bad for a chance to save the company even when any third party would stay safely away. Insiders of a failing company...