Business Bankruptcy

Received Notice of Bankruptcy & Failed to Act? You May Still be Safe

April 10, 2014
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A well-known concept in bankruptcy cases is that creditors who receive notice of the filing and fail to take action to preserve their rights may waive those rights. There are, however, exceptions to this. In the case of In re S. White Transportation (“White Transportation”), the U.S. Court of Appeals for the Fifth Circuit allowed […]

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Secured Lenders & Loan Forbearance Agreements

April 3, 2014
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When a borrower defaults under a loan agreement, a lender has several available options. For example, the lender can file a lawsuit and seek to foreclose or repossess collateral, negotiate a modification of the loan documents, or enter into a forbearance agreement. In many cases, the lender will agree to forbear from pursuing its legal […]

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Assignment for the Benefit of Creditors: Corporate Alternative to Bankruptcy

April 1, 2014
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An assignment for the benefit of creditors (“ABC”) is a state law alternative to bankruptcy for companies struggling financially. It is not applicable to an entity desiring to reorganize, but it may be ideal for a company looking to orderly liquidate its assets and pay creditors. In sum, the ABC process involves a debtor company […]

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