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Vol 13, Num 2 l June 2016

Asset Sales

► In This Issue:

Information Wish List to Evaluate a First-Day Asset Sale Motion

Kenneth A. Rosen
Lowenstein Sandler LLP
Roseland, N.J.

Chapter 11 has largely become the sale chapter of the Bankruptcy Code. If the case is not a quick sale case, then it probably is a debt-for-equity swap. A traditional chapter 11 reorganization is expensive and, because of its relatively low success rate, is viewed by many lenders as not worth it.

The typical “first day” sale motion asserts that the debtor is hemorrhaging cash, that there are no options besides a quick sale and that delay will severely erode the estate. The bankruptcy judge is placed in the difficult position of having limited information before a creditors’ committee has been appointed and sometimes even after the committee has been appointed. Therefore, the bankruptcy judge, with his/her back up against the wall and concerned about being proven wrong if they do not allow the expedited sale process to go forward, reluctantly agrees. » Read More

Chapter 7 Asset Sales in the Digital Age: Suggested Process Improvements to Maximize Estate Values


Michael Mikikian
Inforuptcy LLC
Los Angeles


The current process for administering chapter 7 cases was established at a time when paper documents had to be hand-delivered to the courts for processing. It was an era of “runners.” Over the decades, the proliferation of filing and case-management software has increased efficiency for trustees with respect to administrative tasks, and runners have been replaced by point-and-click.

However, the dissemination of information, a key component to maximizing returns on sales of assets, has not seen the benefits of the technology age. Many trustees administering chapter 7 cases have not taken advantage of technological advancements that could be utilized with minimal effort to improve their day-to-day processes for the purposes of disclosing asset-liquidation information earlier and in more detail. » Read More


May 2016 Edition of Eye on Bankruptcy Available Online

The May 2016 edition of Eye on Bankruptcy includes host, Prof. Michelle Harner (University of Maryland Francis King Carey School of Law), interviewing this month's featured guests, Hon. Kevin R. Huennekens (U.S. Bankruptcy Court E.D. VA; Richmond) and Immediate Past President, Brian L. Shaw (Shaw Fishman Glantz & Towbin LLC; Chicago). Speakers discussed a variety of topics, including oil and gas, attorney's fees, gaming, appeals, and more. Relevant cases include In re Meier, Jeffery P. White & Asscocs. v. Fessenden, In re Trump Entm't Resorts, Utzman v. Suntrust Mortg., Inc, and more.

Click here to view this important Eye on Bankruptcy video.


Recordings Available: Catch Up on Missed Committee Calls

Committees have recently hosted a variety of calls to dicuss topics relevant to their members. Listen to the selected recordings listed below and watch your inbox for opportunities to join future calls!

Gifting in 363 Sales and Plans (Unsecured Trade Creditors Committee)

Ethics Issues in Mediation and Party Advocacy (Mediation & Bankruptcy Litigation Committees)

Proposed Changes to Section 550 (Commercial Fraud Committee)


Southeast Bankruptcy Workshop

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