In The (Red)®

In The (Red)®

The Business Bankruptcy Blog

Tag Archives: assignment for the benefit of creditors

The Venture-Backed Company Running Out Of Cash: Fiduciary Duties And Wind Down Options

Posted in The Financially Troubled Company
Many start-up companies backed by venture capital financing, especially those still in the development phase or which otherwise are not cash flow breakeven, at some point may face the prospect of running out of cash. Although many will timely close another round of financing, others may not. This post focuses on options available to companies… Continue Reading

Section 363 Sales And Beyond: An M&A Lawyer’s Perspective On Purchasing Assets From Distressed Companies

Posted in Business Bankruptcy Issues, The Financially Troubled Company
With the economy suffering through the longest recession since the 1930s, it’s little wonder that much of the merger and acquisition ("M&A") activity these days has been focused on distressed companies. The Chrysler and General Motors cases may be the best-known examples, but Chapter 11 bankruptcy is frequently used by companies large and small to sell assets through Section 363… Continue Reading

Latest Edition Of Bankruptcy Resource Now Available

Posted in Business Bankruptcy Issues, Recent Developments
The Spring 2008 edition of the Absolute Priority newsletter, published by the Cooley Godward Kronish LLP Bankruptcy & Restructuring group, of which I am a member, has just been released. The newsletter give updates on current developments in bankruptcies and workouts with the goal of keeping you "ahead of the curve" on these issues. Follow… Continue Reading

Assignments For The Benefit Of Creditors: Simple As ABC?

Posted in Business Bankruptcy Issues, The Financially Troubled Company
Companies in financial trouble are often forced to liquidate their assets to pay creditors. While a Chapter 11 bankruptcy sometimes makes the most sense, other times a Chapter 7 bankruptcy is required, and in still other situations a corporate dissolution may be best. This post examines another of the options, the assignment for the benefit of creditors,… Continue Reading