Chapter 15-4 - A Distressed Investing Update on Bankruptcy Sales

After a short hiatus from the blog, I’m back with the first of the bonus chapters to Distress To Success.   Future bonus chapters will be posted on the blog like today, and shortly, will also be available for download from links at www.distresstosuccessbook.com.    As described in the book, Distress To Success is intended to remain current through these automatic updates using the social-networking web.

The first bonus chapter?  The new Chapter 15-4, which outlines a recent development in distressed investing.  When it comes to bankruptcy sales over the past few years, courts have begun to allow bankruptcy debtors to sell assets through a Chapter 11 plan without letting secured creditors “credit bid” at the sale.  (Credit bidding, remember, is the right of a lender to bid at the sale by giving credit against its secured debt, so that it doesn’t have to come out of pocket additional money).   This is a time of transition in bankruptcy sales though, because one of the influential appellate courts has just found that lenders have to be given the right to credit bid at sales – so different courts now have different rules, and strategy MATTERS.

For the full article, click here: http://www.turnaround.org/Publications/Articles.aspx?objectID=13619

For the cover page for the chapter if you’re printing it to put in your book,  click here: RAG Distress to Success Chapter 15-4 Cover Page.pdf

Posted by: Bobby Guy

Categories: Bankruptcy & Banking Law, Distressed Businesses, Acquisitions, and Restructuring