Disposition of Partial LLC Interests in Bankruptcy
November 30, 2015
The most obvious and logical candidates to purchase an estate's LLC interests are the other, non-bankrupt members because the market for selling privately held LLC interests is thin, and dispositions to third parties may raise complications concerning sales of unregistered securities.
Employee-Related Litigation
November 30, 2015
Business bankruptcy filings are down significantly from their high point during the Great Recession. What appears to have replaced foreclosures and institutional debt issues as the straw that breaks the camel's back is litigation. In many cases seen locally (in the Central District of California), the nature of litigation that pushes a company over the line comes in the form of employee-related causes of action.
On the Move
November 30, 2015
Who's going where; who's doing what.
Debtors Cannot Sell Unsecured Creditor's Collateral
November 30, 2015
Under Section 363(f) of the Bankruptcy Code, a debtor may sell property free and clear of a third-party's liens, claims and encumbrances only if that party "could be compelled, in a legal or equitable proceeding, to accept a money satisfaction" of that party's interest in the property. However, in a recent case, the judge was faced with a relatively rare scenario.
For-Profit Colleges
November 02, 2015
The author opines that If Chapter 11 were available to post-secondary schools, rehabilitation for those schools whose problems are balance-sheet issues but not academic or management, would be possible. The result, among others, would be to preserve the institution, the value of credits earned by students and the value of degrees confirmed to alumni.
My New BFF Is a Smart VDR
November 02, 2015
Review of SmartRoom, a secure virtual data room)that was first conceived to securely host due diligence documents for an expedited Chapter 11 asset sale of multiple properties with multiple potential bidders.
Ninth Circuit Insulates Corporate Insider from Preference Liability
October 02, 2015
"A corporate insider who personally guaranteed" the debtor's loan was not liable on a bankruptcy trustee's preference claim when the corporate debtor repaid its lender, held the U.S. Court of Appeals for the Ninth Circuit on May 6, 2015. This article analyzes the ruling.