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Increased Bankruptcy M&A Activity Should Provide Attractive Opportunities for Lenders
It seems clear that bankruptcy filings inevitably will increase in the near future, because of rising interest rates, pandemic-related micro-economic forces, global strife, and other macro-economic factors and their continuing strain on the global economy and individual businesses.
Consequently, strategic buyers and private equity sponsors should find expanding opportunities to purchase distressed businesses out of bankruptcy. Increased bankruptcy M&A activity also should provide attractive opportunities for lenders. In many situations, these transactions may be more attractive than non-bankruptcy financings, because the buyer should be able to assume only very specific and limited liabilities of the target. Although bankruptcy may add complexities and procedural issues, lenders generally should be able to minimize any associated risks by following the recommendations below.
Bankruptcy Acquisition Process As It Relates to Financing
Bankruptcy Code §363(b)(1) provides that a debtor, "after notice and a hearing, may … sell, … other than in the ordinary course of business, property of the estate …" independent of a reorganization plan. The 363 sale process typically includes an interim hearing on bidding and sale procedures, an auction (if there are multiple bidders), and ultimately a sale approval hearing after notice of the proposed sale and an opportunity to object is provided to parties-in-interest.
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?