Press
8 years 9 weeks ago
The debate Thursday, Jan. 29, at an American Bankruptcy Institute event centered not on whether to alter the Bankruptcy Code but on specific changes of everything from real estate lease rejection timelines to plan voting requirements.
Still, the general consensus of the panelists at the New York event -- put on by the association of bankruptcy professionals to discuss the recommendations in its recent report on revising Chapter 11 statutes -- was that any adjustments to the Code would not be large.
Wachtell, Lipton, Rosen & Katz partner Harold S. Novikoff, one of the panelists in an opening discussion, said the Dec. 8 report was not a "teardown" of the Code. The event's moderator, Bill Rochelle of Bloomberg News, later called many of the changes "not radical."
8 years 9 weeks ago
Anyone who has ever litigated a valuation issue knows that valuation is more art than science. Experts often arrive at widely divergent valuations. Yet, these valuations are of the same company, for the same time period, based on the same data, and often invoke the same model.
8 years 9 weeks ago
People (and institutions) like rules that give them a competitive edge. You need only to look at the recent headlines and the media coverage of “Deflate Gate” to understand this basic concept.
8 years 9 weeks ago
It may surprise some, but approximately 90 percent of all chapter 11 debtors have less than $10 million in assets or liabilities, less than $10 million in annual revenues, and 50 or fewer employees.
8 years 10 weeks ago
The general counsel of a financially distressed company calls you. She of course clearly states that her company does not need to file a chapter 11 case, but she is curious to understand how a chapter 11 case might work for her company.
8 years 10 weeks ago
In the latest installment of our series reviewing the Final Report and Recommendations of the American Bankruptcy Institute Commission to Study the Reform of Chapter 11, we review the Commission’s comments on (i) venue and (ii) core and noncore matters – discussed in sections IX.A and IX.B, respectively. Two topics that – in a notable departure from the majority of the Report – the Commission did not issue any recommendations for reform, but for quite different reasons in each instance.
8 years 10 weeks ago
It is undeniable that chapter 11 changes people’s lives. It can save an employee’s job, continue a customer relationship for a vendor, and preserve a tenant for a landlord. It also can, however, devastate all of these relationships in what feels like a nanosecond—relationships that many people rely on to support their families or their own business operations.
8 years 10 weeks ago
In the past two months, four retailers have filed bankruptcy cases. RadioShack is rumored to be preparing a chapter 11 filing, and other retailers certainly appear to be struggling. But if you were counseling any of these retailers, would you recommend a chapter 11 filing?
8 years 10 weeks ago
Claims trading is a hot topic. The claims trading industry has been growing exponentially in recent years. Indeed, the Report notes that in 2012, amid a slowdown in large corporate chapter 11 cases, distressed investors still bought and sold more than $41 billion in bankruptcy claims.
8 years 10 weeks ago
Based on my research and my ten-plus years in private practice, chapter 11 is not just a value maximization and distribution scheme. It is much more.
