NO CLE - Do “Out-of-the-Money” Creditors Have Standing?

Do “Out-of-the-Money” Creditors Have Standing?

There are many chapter 11’s filed primarily to sell the collateral
for undersecured creditors—meaning that there isn’t any value generated
for unsecured creditors or equity. This panel will explore the various
issues that result such as basic standing and the appropriateness of
forming and maintaining a creditors committee and an equity committee.
The panel will also discuss the various arguments put forth to justify a
carveout or “gift” for unsecured creditors and the often used
“pay-to-play” rule occasionally asserted by out-of-the-money creditor
groups. It will also examine ways to identify unencumbered assets early
in the case and the possible benefits of keeping them free from
post-petition liens granted to DIP Lenders. Lastly, the panel will
discuss ways to maximize the Chapter 5 claims and the use of liquidating
assets.

Free Session

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