The "new value exception" in single-asset reorganizations: a commentary on the Bjolmes auction procedure and its relationship to Chapter 11

Article Abstract:

The Bjolmes auction procedure, adapted from In re Bjolmes Realty Trust, applies to corporate bankruptcy reorganization plans involving only one asset. It allows creditors to devote new capital to a debtor's business in return for ensuring that a debtor's reorganization plan will allow repayment of debt. A Bjolmes remedy of renegotiating corporate debt by giving creditors extra interests in future corporate earnings serves the goal of the new value exception, through which bankruptcy courts suspend the absolute priority given to creditors to recover debt payment in order to keep the financially endangered company solvent.

Management, Priorities of claims and liens, Debt financing (Corporations), Debt financing

---

Commentary on Mr. Case's and Mr. Harwood's paper: prepackaged reorganizations

Article Abstract:

The presentation by Stephen H. Case and Mitchell A. Harwood on prepackaged reorganizations and declaratory judgments is the subject of comments and open discussion by participants in a bankruptcy law symposium held at New York University School of Law, Apr 12, 1991. Comments suggest that the proposed streamlined bankruptcy procedure would not be fair to dissenting creditors, or that unless all agree, the procedure could be lengthened by appeals. Jurisdiction and other issues are also discussed.

Usage, Beliefs, opinions and attitudes, Criticism and interpretation, Panel Discussion, Judgments, Declaratory, Declaratory judgments, Kraemer, Lillian E., Rosen, Leonard M., Case, Stephen H.

---

Similar abstracts:

• Abstracts: House and Senate version of securities reform legislation, which differ on the safe harbor for predictions and the definition of 'scienter,' must be reconciled
• Abstracts: New strategies add spice to retreat proceedings; organizers can use a variety of methods to capture attorneys' attention during firm retreats
• Abstracts: The courts' assault on the Robinson-Patman Act. No team, no peace: franchise free agency in the National Football League
• Abstracts: Courts split on special deals tied to tender offers: at issue is when stock deals with major shareholders of the target violate Exchange Act rule 14d-10
• Abstracts: Freedom to provide services - prohibition of dissemination of information about hospitals in other member states that perform abortions

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.