The Journal of Corporate Renewal
DIP Loans Face Increasing Judicial Scrutiny
Review Focuses on Non-Monetary Issues
Although debtor-in-possession (DIP) loans by new lenders are routinely approved with little resistance by bankruptcy courts, those made by pre-petition lenders are receiving increasing scrutiny.
Proper Exit Financing Is Key to Chapter 11 Emergence
Challenges Abound for Debtors, Lenders Alike
As economic conditions continue to improve from the days of the early 2000s, reorganizing and emerging as a viable going concern may be more appealing than the Chapter 11 filings that were common then.
Alternative Collateral Can Be Hidden Gold Mine
Increasingly, "boot," collateral is adding extraordinary value in the sale of a business as a whole or in the breakup value, if a company is sold in pieces.
Is ‘Lease’ a Financing Agreement in Disguise? Rights of Both Sides Hinge on Answer
The authors briefly explore the circumstances under which a bankruptcy court may recharacterize personal and real property leases and the consequences to purported lessors of such decisions.
Tapping Leverage, Liquidity in Surplus Assets
A turnaround professional’s ability to find leverage and liquidity in surplus assets quickly is invaluable and absolutely fundamental to success.
Delays, Concessions May Create Lender Liability
Moving On Quickly Benefits Both Banks, Troubled Clients
Telling clients that they must seek financing from another source is difficult for bankers; but when borrowers are out of favor with their banks, it’s truly in everyone’s best interests for these clients to move on.
Trojan Horse Tactic Doesn’t Work for Consignors
Confident that their interests are adequately protected by security interests in a company’s inventory, banks and other creditors often discover later that things aren’t always as they seem.
Wisconsin High Court Restricts Creditors’ Fudiciary Claims
Creditors of a Wisconsin-based corporation must now recognize that they may not have an opportunity to assert fiduciary claims against officers and directors.
DIP and Asset-Based Financing: Strategies for Maximizing Value
For this issue of The Journal of Corporate Renewal, we asked lenders and lenders’ counsel to write about legal and business issues they are encountering in today’s marketplace.