363 Asset Sales

Companies in financial distress are evaluating asset sales to save a business in stress or money to keep people employed. Under Bankruptcy Code Section 363(b), an asset sale may be conducted outside of a reorganization plan. A bankruptcy sale has the benefits of transferring title to assets clear and free of any interest in the […]

Conversion or Dismissal

A Chapter 11 case in New York starts with the filing of a petition with the bankruptcy court serving the area where the debtor lives. Each court has its own personality because the judges and trustees are different. Judge vacancies may create anxiety on court procedures and the number of cases on calendars with creditors, […]

Freddie Mac Modification

In Bulletin 2011-16 dated September 12, 2011, the Federal Home Loan Mortgage Corporation (Freddie Mac) published the requirements for its Standard Modification program. For the debtor looking to save a house, before contemplating bankruptcy, the debtor might look into the Standard Modification, which serves as a workout option for borrowers who are ineligible for the […]

Enron’s Prematurity Redemptions of Commercial Paper

The U.S. Court of Appeals for the Second Circuit held in In re Enron Creditors Recovery Corp. v. Alfa., No. 09-5122-bk (2d Cir. June 28, 2011) that prematurity redemptions of commercial paper made by Enron Corp. before it filed bankruptcy were protected from avoidance by 11 U.S.C. § 546(e)’s safe harbor for securities transaction settlement […]

How to End a Small Business?

When a small business goes through rough financial times, there are many options to get out of a business – merger, liquidate, bankruptcy. In determine which path to take when ending a business, the owner might first look over the business’ debts.  The types of debts a business has may be a factor in deciding […]