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Chapter 11 Structured Dismissals: Viable Exit Strategy or Impermissible Under Bankruptcy Code?

October 28, 2014

Evaluating Benefits to Debtors and Creditors, Provisions of Dismissal Orders, and Key Objections to Structured Dismissals

ALIVE 90-MINUTE CLE WEBINAR WITH INTERACTIVE Q&A


TUESDAY, OCTOBER 28, 2014 1:00PM-2:30PM EDT, 10:00AM-11:30AM PDT

EARLY REGISTRATION DISCOUNT DEADLINE, FRIDAY, OCTOBER 3, 2014

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This CLE webinar will provide counsel with a drill down on the disposition of estate assets, structured dismissals of Chapter 11 cases after an asset sale, the benefits of structured dismissals for debtors and creditors, conditions and provisions of dismissal orders, applicable Bankruptcy Code sections, and key objections to structured dismissals.

Description

With increasing frequency, Chapter 11 debtors are looking at structured dismissals as a viable exit strategy in lieu of confirming a liquidating plan or Chapter 7 conversion. 

Structured dismissals are beneficial for debtors that have disposed of assets outside of a plan, but are administratively insolvent. This strategy can also benefit a debtor that has disposed of its assets in a Section 363 sale and can fund a liquidation plan, but it would significantly reduce funds available for creditors.

Opponents of structured dismissals contend they violate the Bankruptcy Code as impermissible sub rosa plans. Others object to the inclusion of releases and exculpation provisions in dismissal orders. While most structured dismissal orders that have been approved were mutually consensual, there is little case law addressing contested dismissals.

Listen as our authoritative panel of bankruptcy attorneys discusses recent trends in da isposition of estate assets, structured dismissals of Chapter 11 cases, applicable Bankruptcy Code sections, conditions and provisions of dismissal orders, and key objections to structured dismissals.

Outline

  1. Disposition of estate assets
  2. Scenarios conducive to a structured settlement
  3. Relevant Bankruptcy Code sections
  4. Conditions and provisions of dismissal orders
  5. Key objections to structured dismissals
  6. Perspective of U.S. Trustee’s Office

Benefits

Our panel will review these and other key issues:

  • When a structured dismissal is a viable exit strategy for Chapter 11 cases
  • Advantages of structured dismissals for debtors and creditors
  • Objections to structured dismissals from the U.S. Trustee’s Office
  • Counter-arguments to opponent claims that structured dismissals violate the Code
  • Conditions and provisions of dismissal orders

Faculty

Jay R. IndykePartner Cooley, New York

Mr. Indyke’s practice is concentrated in the area of creditor’s rights and bankruptcy. He has represented official creditors’ committees in Chapter 11 bankruptcy proceedings in over 40 states and has also represented unofficial creditors’ committees in out of court workouts and composition agreements in many industries, including apparel, media, sporting goods, electronics, textiles, clean technology, footwear, food service, furniture, toys and healthcare.   He has also represented purchasers of significant assets in several different industries.

Michael J. LichtensteinCo-Chair Bankruptcy Creditors Rights GroupShulman Rogers Gandal Pordy & Ecker, Potomac, M.D.

Mr. Lichtenstein practices in the areas of workouts, bankruptcy litigation , nd commercial litigation. His practice includes retention as an expert witness, representation of financial institutions, creditors’ committees, creditors, landlords, debtors and equity holders in Chapter 11 proceedings in more than ten states and in commercial litigation in state and federal courts.  He has also represented companies in a variety of industries in the purchase and sale of assets in bankruptcy proceedings.

David M. PosnerAtty Otterbourg, New York