By Ingrid Bagby, Michele Maman, Anthony Greene, and Marc Veilleux (Cadwalader Wickersham & Taft LLP) Note: This post is the …
The Law and Economics of Investing in Bankruptcy in the United States
By Jared A. Ellias (University of California Hastings College of the Law) When commentators describe American bankruptcy law as …
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Inequitable Subordination: Distressing Distressed Claims Purchasers by Propagating Subordination Benefit Elimination Theory
By Jay Rao (University of California, Berkeley, School of Law) This Article examines the application of equitable subordination …
A Cautionary Tale for Claims Traders and Other Contract Counterparties
By David Griffiths and Leonard Yoo (Weil, Gotshal & Manges LLP). During a negotiation over a sale of claims, when parties …
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The Ninth Circuit Affirms Creditors’ Ability to Block ‘Cramdown’ by Purchasing Claims
By George P. Angelich and Annie Y. Stoops (Arent Fox). The Ninth Circuit affirmed the creditor’s ability to block “cramdown” by …
Bankruptcy Claims Trading
By Jared A. Ellias (University of California, Hastings) Over the past twenty years, a robust secondary market has emerged in the …
WSJ Examiners – Claims Trading
Does claims trading impede chapter 11 reorganizations? And, if so, would disclosure of additional information about traded claims …
Purchasing Claims and Changing Votes: Establishing “Cause” under Rule 3018(a)
By Amir Shachmurove Chapter 11 of the Bankruptcy Code gives creditors whose rights will be impaired the right to vote to accept …
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Bankruptcy Law as a Liquidity Provider
Authors: Kenneth Ayotte & David Skeel Since the outset of the recent financial crisis, liquidity problems have been cited as …
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Activist Investors, Distressed Companies, and Value Uncertainty
Authors: Michelle M. Harner, Jamie Marincic Griffin, and Jennifer Ivey-Crickenberger Hedge funds and other private investment …
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“Trade Away!”—Bankruptcy Court for the Southern District of New York Decides That Original Issue Discount From Fair Value Exchanges Is Allowable in Bankruptcy
Authors: Richard L. Wynne and Lance Miller, Jones Day Debt exchanges have long been utilized by distressed companies to address …
Buyer Beware: Courts Put Claims Trades Under a Microscope
By Rick Antonoff, Mark Pesso, Timothy Bennett and Leah Edelboim, Clifford Chance US LLP Recent decisions on claims trading in …
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The Ownership and Trading of Debt Claims in Chapter 11 Restructurings
By Victoria Ivashina, Ben Iverson, and David C. Smith The role that active investors play in Chapter 11 reorganization is hotly …
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A Recent Decision in the Fisker Case Brings New Life to the Credit Bidding Debate
Author: Nelly Almeida, Weil Gotshal & Manges LLP On January 10, 2014, the United States Bankruptcy Court for the District of …