In The (Red)®

In The (Red)®

The Business Bankruptcy Blog

Tag Archives: automatic stay

DIP Financing: How Chapter 11’s Bankruptcy Loan Rules Can Be Used To Help A Business Access Liquidity

Posted in Business Bankruptcy Issues, The Financially Troubled Company
Cash Is King. An army may march on its stomach, but for companies, it’s liquidity that keeps the business going. For many companies, typical sources of liquidity, beyond cash flow from sales or other revenue, are (1) financing from banks or other secured lenders, (2) credit from vendors that can reduce immediate liquidity needs, and (3) when needed,… Continue Reading

Forced Into Bankruptcy: The Involuntary Bankruptcy Process

Posted in Business Bankruptcy Issues, The Financially Troubled Company
When a company is facing financial distress, the question often comes up whether creditors can "force" the company into bankruptcy. Although the answer is more complicated than it may seem, this post aims to sort out what being "forced into bankruptcy" really means (hint: there are two different ways this can happen) and why it matters to companies and creditors. Forced… Continue Reading

Real Estate Workouts: Are Pre-Bankruptcy Waivers Of The Automatic Stay Enforceable?

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
This post examines a new decision from the Bankruptcy Court for the Southern District of Florida involving the enforceability of a pre-bankruptcy waiver of the automatic stay. Let’s first set the stage by taking a look at a not so uncommon fact pattern involving a real estate project in financial trouble. The Real Estate Workout: Forbearance… Continue Reading

Automatic Stay Of Bankruptcy

Posted in Business Bankruptcy Issues
One of the most fundamental protections for companies or individuals filing for bankruptcy is the automatic stay.  In fact, when someone says a company has sought "bankruptcy protection" they usually are referring to the "protection" of the automatic stay.  The automatic stay arises the instant a bankruptcy petition is filed.  It doesn’t matter whether the… Continue Reading