Episode 4 part 2: Bankruptcy Traps

Remember: Bankruptcy is not a DIY project. Consult a professional before deciding if bankruptcy is right for you.          

Welcome to Corporate Bankruptcy A to Z, a show designed to educate you on the ins and outs and the dos and don’ts of corporate bankruptcy. On this show, you will hear experts from every step of the bankruptcy process answer the questions that you will need to know, from the simple to the complex.

Email your questions for the experts to neil@elementarybusiness.com and to sravin@saul.com. Their door is always open and they will respond.

4:48 – Introduction
7:01 – Who gets control over assets
8:45 – What is the criteria for involuntary bankruptcy
10:36 – Obtaining the use of cash
14:32 – Collection efforts
16:00 – Can a company sell any of its assets? 
16:45 – Bankruptcy court approval 
18:04 – Can the company pay debtors/vendors from before filing?
20:20 – Looking for a home court advantage
20:45 – Kmart Ruling & critical vendors 
21:44 – Can a company give raises/bonuses to employees
22:12 – Are there critical employees
23:35 – Can employees keep benefits/perks
25:43 – Can the company get a new lender
26:57 – Can the first lender become a DIP lender
27:50 – Time limit for a bankruptcy
29:51 – Exclusivity period
31:30 – Are all creditors treated the same?
33:53 – Example of administrative claims
34:49 – Where do employees fit?
37:26 – Existing contracts
41:55 – Does the court have to accept a plan?
44:55 – Final thoughts

Michelle G. Novick is a partner in Saul Ewing Arnstein & Lehr’s Chicago office. Michelle is an experienced insolvency professional with a reputation for thinking “outside the box” and finding practical, efficient solutions to clients’ financial and legal problems. Michelle has represented clients on every side of a transaction in corporate bankruptcy proceedings. She has successfully handled contested and complex arbitrations, addressing contract disputes involving complicated payment terms and has navigated profit and not-for-profit companies through bankruptcy restructurings and sales.

Call her at 312-876-7899 or email Michelle.Novick@saul.com if you have any questions.

Host Information:

Neil Goldstein (AKA the Workout Guy) is the founder of Elementary Business inc. a specialized consulting firm for distressed businesses and entities in transition. Mr. Goldstein works closely with owners to structure improvements in both operations and finances. With many successes in his portfolio, Mr. Goldstein focuses on the needs of the owner to achieve results in profitability, sale of the company or finding a partner for growth.

Neil’s book is now available on Amazon.com

Call 940-808-9451 or Email neil@elementarybusiness.com or visit ElementaryBusiness.com

Stephen B. Ravin is a highly seasoned insolvency and bankruptcy attorney, with more than 40 years experience. He has served as a trustee and has represented trustees, individual and corporate debtors, creditors, creditors’ committees, assignees for the benefit of creditors and receivers.

 Call 973-286-6714. Or email him sravin@saul.com

Do you have any concerns about the bankruptcy process and how it will impact your business? Why not ask the experts? Feel free to reach out to Neil or Steve with your questions and you may even hear them answered in the mail bag. Be sure you subscribe the podcast and please consider leaving a 5 star review. New episodes air, every other Tuesday.

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