The following Restructuring & Insolvency practice note Produced in partnership with Julie Lanz of Skadden Arps Slate Meagher & Flom LLP provides comprehensive and up to date legal information covering:
This content is affected by the coronavirus (COVID-19) pandemic. For further details, take a look at our Coronavirus (COVID-19) toolkit and Practice Note: Coronavirus (COVID-19) Tracker of insolvency reforms globally. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.
Chapter 11 provides a debtor with an opportunity to reorganise a business or capital structure while continuing normal business operations under the control of the debtor’s management and board of directors. See: 11 U.S.C.§§ 1102, 1107 (not reported by LexisNexis®).
Although the debtor usually continues to run the business operations (ie the debtor remains in possession), the US Trustee monitors the bankruptcy case and typically appoints an official committee of unsecured creditors to represent the interests of unsecured creditors.
A pre-packaged bankruptcy occurs when the debtor negotiates a plan of reorganisation with its creditors and other stakeholders and solicits votes on its plan of reorganisation before filing for bankruptcy. See: 11 U.S.C.§§ 1125 (not reported by LexisNexis®).
A pre-negotiated or pre-arranged bankruptcy occurs where a debtor reaches a consensus with key stakeholders regarding the terms of a reorganisation before filing of bankruptcy, though votes on a plan are not solicited prior to filing for chapter 11 (although in some cases lock-up agreements may be obtained).
A conventional or traditional chapter 11 is
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This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having an intercreditor agreement and when an intercreditor agreement would be used instead of a deed of priority or subordination deed•provides links to
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