Bankruptcy Fundamentals for Corporate Counsel: Protecting and Enforcing Creditor Claims in a Chapter 11 Proceeding

Description

The bankruptcy or insolvency of a customer, tenant or trading partner can have a significant impact on a creditor company. The current trend of retail bankruptcies highlights some of the problems faced by landlords and trade creditors who must navigate the complexities of Chapter 11 bankruptcy or other insolvency proceedings.

Notice of a bankruptcy filing triggers an automatic stay prohibiting creditors from taking any action against the debtor’s assets. It is followed by a series of filings and notices to which the creditor company must respond, including notice of the bar date for filing a proof of claim, the debtor’s schedule of assets and liabilities, notice of proposed assumption of executory contracts, and the proposed plan of reorganization.

Corporate counsel should know the roles of the players in a Chapter 11 bankruptcy, including the debtor, the court, the trustee, and the creditors’ committee. Counsel should also understand the different types of creditors (secured, unsecured, employees, tort claimants, landlords), and how each is treated relative to the others in a bankruptcy proceeding.

Listen as our panel of bankruptcy practitioners explains the bankruptcy process, including critical notices and filings and the appropriate responses to each. The panel will also discuss the role of each party in Chapter 11 proceedings, the different classes of creditors, and how preferences, fraudulent transfers and other issues can affect a creditor’s rights.