As we navigate 2025, we anticipate that distressed asset sales will continue to gain momentum. The current economic landscape has created both challenges and opportunities for businesses, making M&A and asset sales a prominent strategy for companies looking to restructure, grow, or acquire valuable assets at a lower cost.
While corporate restructuring is an option financially distressed companies often proactively explore to reduce their debt burden, another alternative that has recently gained some notoriety is a liability management transaction (LMT).
Editor’s Note: In honor of Black History Month, the Business Reorganization Committee interviewed Ciara Rogers, a partner with Waldrep Wall Babcock & Bailey, PLLC in Raleigh, N.C.
In 2022, following a downturn in travel related to the COVID-19 pandemic, a regional airline filed for bankruptcy in Delaware. In the following months, pursuant to the plan, Chris Tierney was appointed as liquidating trustee, and Steven Jackson was brought in to handle the day-to-day operations.
When a business is in financial trouble, sometimes the best way out is to sell the business as some form of a going concern. Such a sale usually yields more than a piecemeal liquidation of the assets. Losses to creditors are minimized, as are losses to guarantors of debt.
In late 2024, struggling retailer and chapter 11 debtor Big Lots Inc. and its debtor affiliates (together, “Big Lots” or the “debtors”) attempted a § 363 sale of substantially all of their assets to an entity affiliated with Nexus Capital Management LP.
In the realm of bankruptcy auctions, the goal is to maximize proceeds for stakeholders through a process that is transparent and beyond reproach. This article discusses strategies for running a pre-auction process to choose a stalking horse, ensuring that no stone is left unturned in the pursuit of maximizing value.
In 2024, the issues of forum-selection and venue reform were again at the forefront of nationwide discussions about bankruptcy. Regardless of one’s views on the topics, forum considerations must be at the top of the pre-bankruptcy planning list for debtor’s counsel in a large chapter 11 filing.
For nearly 20 years, insolvency estate professionals have utilized “remnant asset” sales as a prudent and efficient means to fully and finally administer estate assets, and thereby fulfill their fiduciary duty to maximize estate value for the benefit of creditors.[1] This simple practice, which has become commonplace in the restructuri
As a great 2024 comes to a close, we look forward to an exciting 2025. At this year’s Winter Leadership Conference in December, we co-hosted a timely panel with the Ethics and Professional Compensation Committee.
This panel will discuss various issues arising from the development of a new class of collateral: that which is remotely controllable. The concept of a secured creditor controlling its collateral is of course not a new or novel concept. However, the ability of secured creditors to control their collateral remotely is growing rapidly as new technology and new types of assets are developed.
The increased debt limit applicable to subchapter V cases expired in June 2024. This webinar, hosted by ABI's Business Reorganization and Legislation Committees, will examine the effects of the increased debt limit's expiration, where small business debtors and their attorneys can go from here, best practices and potential workarounds, prospects for further congressional action and more.
With the climate of COVID-19 in the rearview mirror, the consumer bankruptcy process now largely resembles the normalcy that had been elusive during the pandemic. However, remnants of COVID legislation have influenced escrow accounts of consumer debtors and consequently impacted mortgage creditor proofs of claim.
Discover firsthand insights into insolvency in Africa. In this webinar, the panelists will showcase their countries' approaches, followed by engaging discussions on the pivotal roles and rights of stakeholders (creditors, employees and shareholders). Uncover essential perspectives and strategies that are reshaping the landscape of insolvency management worldwide. Don't miss out on this opportunity to gain actionable knowledge and network with industry leaders!
The recipients of ABI's 2023 Health Care Asset Sale of the Year award will discuss the company's threatened suspension by the California Medi-Cal program and the execution of a strategy that initially had led to court orders stopping the suspension, then later culminated in the sale of assets. Hear specifically how Borrego's professionals navigated complex health care, regulatory and bankruptcy issues, which ultimately resulted in a settlement and sale that ensured the continuation of high-quality, culturally competent care to Borrego's patients and a substantial recovery for creditors.
This panel of bankruptcy practitioners will discuss all facets of merchant cash advance (MCA) funding, its history, and its interplay with bankruptcy. The panelists will provide different perspectives — MCA company, debtor and subchapter V trustee — on the legal implications of merchant cash advances in chapter 11 bankruptcy proceedings, as well as practical solutions for dealing with MCAs in chapter 11 cases.
This mock mediation, based on the Southern District of New York’s (SDNY's) recent preference decision in The Great Atlantic & Pacific Tea Company, Inc. bankruptcy cases involving McKesson Corp., will demonstrate how plaintiff, defendant and mediator analyze risk and preference exposure when trying to reach a mediated settlement. The SDNY’s decision followed two summary-judgment motions filed by McKesson, but this webinar will assume that this is a pre-summary-judgment mediation.
The hospitality sector is one of the commercial real estate asset classes that has endured profound changes since the pandemic, both positive and negative. Pent-up demand for travel, flexible work schedules and strong consumer spending are driving demand in some sectors, while remote work has fundamentally changed business travel, which is straining occupancy and profits at properties that historically have relied on this steady stream of business.
Commercial real estate continues to be top of mind for restructuring professionals nationwide, as Federal Reserve interest rate policy to curb inflation is impacting values at the same time as rapid changes in supply and demand within several asset classes have taken hold. ABI's Real Estate Committee is honored to host a commercial real estate economic outlook presentation featuring Martin Lavelle, senior business economist with the Federal Reserve Bank of Chicago, to provide important market intelligence.
The panel of judges and scholars, moderated by ABI’s Bill Rochelle, will discuss the Supreme Court’s most recent bankruptcy decisions to identify trends and predict where the Court is going when it comes to bankruptcy law. Topics will include the erosion of the bankruptcy court’s equity power, nondebtor releases and equitable mootness.
