Quasi-Bankruptcy Quagmires
April 01, 2019
<i><b>When Entities May Not Have a Filing Choice and How Creditors Are Impacted</i></b><p>This article explores the difficulties some entities have encountered in filing bankruptcies and how one organization used extraordinary civil remedies in an attempt to accomplish what reorganization under Chapter 11 of the United States Bankruptcy Code would have provided.
Take-Aways from the Sears Sale Process
April 01, 2019
As widely reported, the downfall of Sears was a slow-motion train wreck. Despite its unique size and complexity, however, some of the strategies and techniques used by the stakeholders in Sears can be applied in cases of any size.
Don't Set Me Off: No Triangular Setoff Among Affiliated Entities and a Debtor Counterparty
March 01, 2019
In today's global economy, companies often have multiple business lines operating through separate entities. Outside of bankruptcy, these affiliated operations sometimes transact in a holistic — albeit legally distinct — debtor-creditor relationship with their counterparty. But, as this article discusses, the legal separateness of affiliates can hinder economic protections that a creditor might have otherwise when its counterparty files for bankruptcy.
Caveat Intercreditor: Bankruptcy May Be Coming
March 01, 2019
<b><i>Bankruptcy Provisions in First Lien/Second Lien Intercreditor Agreements</b></i><p>While intercreditor agreements (ICAs) are not necessarily the most attention-grabbing of the various loan documents common to large financing transactions, they are nevertheless important, and lack of attention to detail with respect to their provisions could lead to unintended results in any future bankruptcy case.
The How, What and Why of a Potential PG&E Bankruptcy
February 01, 2019
PG&E Corporation and its subsidiary, Pacific Gas & Electric Company announced that it expects to file for Chapter 11 bankruptcy protection on or around Jan. 29, 2019, right around the conclusion of a mandatory 15-day notice requirement under California law. Such a filing would represent the second time PG&E resorted to protection under the U.S. Bankruptcy Code.
Reports of the Demise of 'Gifting' Chapter 11 Plans Are An Exaggeration
January 01, 2019
In Nuverra Environmental Solutions,, the U.S. District Court for the District of Delaware affirmed a bankruptcy court order confirming a non-consensual Chapter 11 plan that included "gifted" consideration from a senior secured creditor to fund unequal distributions to two separate classes of unsecured creditors.