Financial Advisors And Investment Banking Committee

The onset of the COVID-19 pandemic has disrupted every level of the supply chain for suppliers and manufacturers. However, despite the added stress of a strained supply chain, labor shortages and the rising costs of raw materials, suppliers have largely avoided the chapter 11 process.

Hello! I was recently appointed co-chair of ABI’s Financial Advisors and Investment Banking (FAIB) Committee, and I could not be more excited. I’m a restructuring/bankruptcy partner at Young Conaway Stargatt & Taylor, LLP, and have been in the business for more than 27 years.

Senator Elizabeth Warren (among others) recently re-introduced a bill to “fundamentally reform” the private-equity system “by closing the legal, tax, and regulatory loopholes that allow private equity firms to capture all the rewards of their investments while insulating themselves from risk.” [1] If enacted, the legislation will greatly impact several

Businesses continue to face a myriad of challenges in today’s economy. Initially, the COVID-19 pandemic resulted in the widespread closure of multiple businesses. Now, U.S. consumer demand for goods is strong, but supply chain woes persist. Compensation costs have increased, while inflation hinders the benefit to workers from that higher pay.

It will come as no surprise to anyone in the bankruptcy and corporate restructuring world over the last few years that the overall number of bankruptcy filings has steadily declined since 2010. Statistics maintained by the Administrative Office of the U.S.

Section 547 of the Bankruptcy Code allows a debtor to avoid and recover transfers that were made in the 90 days prior to filing for chapter 11, provided that the payments meet certain criteria. This criteria can include the following: (1) the payment was made to or for the benefit of the creditor in the form of cash or goods; (2) the payment was for a prior debt (not cash-on-delivery or cash-in-advance); (3) the debtor was insolvent;

On March 28, 2014, the U.S. Bankruptcy Court for the Northern District of California denied the debtor’s motion in In re BR Festivals LLC[1] to employ a chief restructuring officer (CRO) as part of the chapter 11 liquidation of the debtor’s estate. The court provided an additional wrinkle in attempting to retain a CRO.

In real estate bankruptcy proceedings, the determination of a post-bankruptcy interest rate is often a critical element of the repayment or restructuring plan. The appropriate rate is typically not one that can be observed or obtained in the regular markets — the debtor in possession is already in bankruptcy and consequently, a commercial loan is very likely unfeasible. The U.S.

A major part of the anatomy of a turnaround is the weekly cash flow. A deceptively simple exercise, it presents a powerful tool for supporting complex management decisions. Applied during a restructuring process in a myriad of circumstances, it can serve as a basis for valuation from free cash flow or the foundation of a plan of liquidation.

The Association of Insolvency and Restructuring Advisors (AIRA) released its new “Standards for Distressed Business Valuation,” which went into effect on March 1, 2014,[1] and will provide the best practices for valuation professionals.