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Chapter 11 Plans of Reorganization and Equipment Lessors
Filing Chapter 11 is a very expensive proposition these days. The filing fees, coupled with the astronomical attorneys' and special litigation counsels' fees, plus the accountants' fees, are just a few of the expenses for a debtor-in-possession (“DIP”). So what does this mean for us as equipment lessors? It means we must react accordingly and often very quickly to protect ourselves.
It means that many company DIPs set up their exit strategy before they file Chapter 11 to minimize the time that they are in a Chapter 11 bankruptcy proceeding and thereby minimize their costs for attorneys and other fees that the DIPs incur. That equates to us, as equipment lessors, having to play catch-up after being taken by surprise by a slew of so-called “First Day Motions” (such as Motions to Approve Cash Collateral or Debtor-in-Possession Financing, Motions to Pay Pre-Petition Wages, Motions to Pay Utilities, Motions to Pay Critical Vendors, Motions to Employ DIP Attorneys and others similar motions). You might even see a Motion to Sell Substantially All Assets of the DIP, or a Disclosure Statement and Plan of Reorganization filed just a few weeks after the Chapter 11 filing. Just as we are reading the court orders on the First Day Motions, we are inundated with additional pages of documents to read and analyze in order to protect our rights before it's too late.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
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.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Protecting Innovation in the Cyber World from Patent Trolls
With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.