The 1111(b)(2) election: a primer
Article Abstract:
Undersecured creditors should carefully evaluate the advantages and disadvantages of making an election under Bankruptcy Code section 1111(b)(2). The election provides for a postconfirmation floating lien that can increase through appreciation of the collateral's value. The advantage of the lien must be weighed against the disadvantage of loss of the unsecured deficiency claim, however. The election is most advantageous if the collateral is undervalued or expected to appreciate substantially, and the plan provides minimal distribution to unsecured creditors.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1996
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Seeking predictability in bankruptcy: an alternative to judicial recharacterization in structured financing
Article Abstract:
Bankruptcy courts have failed in providing clear principles to securitization or structured financing issues, destabilizing confidence in this important financing mechanism. A two step methodology which discerns fair market value of transferred assets and the distinctness of the bargaining parties will enhance the future viability of securitization as an alternative to traditional financing. A consistent judicial approach will free investors and financial planners to focus more on the benefits of securitization than on its potential problems.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1997
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Covering the "security blanket": regulating bankruptcy claims and claim-participations trading under the federal securities laws
Article Abstract:
Claims against corporations sold by creditors to other parties in a chapter 11 bankruptcy reorganization should be regulated by state authorities under the securities acts. Purchasers of claims often have private information regarding their value. Regulation would allow adequate information to be communicated to affected parties. The selling of a claim transforms its identity into an investment item that should fall under the regulations of the securities acts.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1998
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