Recently I met with a business owner who wanted to use Chapter 11 to solve his business problems. He explained that his company was having severe cash-flow problems, that a friend had told him that Chapter 11 had saved…
FIRST DAY ORDERS — CRITICAL VENDOR ORDERS AFTER KMART
With the commencement of a Chapter 11 reorganization comes the automatic stay and also a prohibition of the debtor’s use of cash collateral, incurring of new debt, or activity outside the ordinary course without appropriate court orders. Operation of the…
Selected Cases On Claims Designation And Voting Rights In Chapter 11 Reorganizations
Two recent cases highlight reluctance by bankruptcy courts to designate claims of creditors who are on friendly terms with Chapter 11 debtors. Bankruptcy Court in Southern District of Ohio Declines to Designate Claims of Friendly Creditor In a case in…