Chapter 11 Overview - Latham & Watkins
Oil & Gas M&A Portal | Providing Access to a Library of Insight
Chapter 11 Overview
January 2016
Latham & Watkins operates worldwide as a limited liability partnership organized under the laws of the State of Delaware (USA) with affiliated limited liability partnerships conducting the practice in the United Kingdom, France, Italy and Singapore and as affiliated partnerships conducting the practice in Hong Kong and Japan. The Law Office of Salman M. Al-Sudairi is Latham & Watkins' associated office in the Kingdom of Saudi Arabia. ? Copyright 2016 Latham & Watkins. All Rights Reserved.
Chapter 11 Overview
? Provide debtor with breathing space from litigation and collection actions
? "Automatic stay" under Section 362 of the Bankruptcy Code stops all foreclosure actions and lawsuits upon the filing of a Chapter 11 petition
? Give debtor time and ability to restructure balance sheet and business
? Facilitate access to working capital through DIP loan financing
Oil & Gas M&A Portal | Providing Access to a Library of Insight 1
Chapter 11 Overview (cont'd)
? Facilitate a "clean start" and the reorganization of a viable business
? Debt reduction ? Rejection of unfavorable contracts under Section 365 of the
Bankruptcy Code
? Foster equality of distribution to similarly situated creditors
? Avoid "race to the courthouse" ? Maximize value of assets and distributions
Oil & Gas M&A Portal | Providing Access to a Library of Insight 2
Traditional Chapter 11 Timeline
Chapter 11 Petition Filed
First Day Motions Filed
Debtor obtains DIP financing and
management continues to run
business
U.S. Trustee forms Official Committee of Unsecured
Creditors
Committee retains financial
and legal advisors
Work on business plan
Negotiations with Committee and secured creditors
Consider assumption or
rejection of executory contracts
Decide on terms of
POR
Obtain exit financing commitment
File Disclosure Statement/ POR
Bankruptcy Court approves Disclosure Statement
Creditors vote on POR
Bankruptcy Court confirms POR
Debtor emerges from Chapter 11
Oil & Gas M&A Portal | Providing Access to a Library of Insight 3
Oil & Gas M&A Portal | Providing Access to a Library of Insight
Bankruptcy Overview
January 2016
Latham & Watkins operates worldwide as a limited liability partnership organized under the laws of the State of Delaware (USA) with affiliated limited liability partnerships conducting the practice in the United Kingdom, France, Italy and Singapore and as affiliated partnerships conducting the practice in Hong Kong and Japan. The Law Office of Salman M. Al-Sudairi is Latham & Watkins' associated office in the Kingdom of Saudi Arabia. ? Copyright 2016 Latham & Watkins. All Rights Reserved.
Why Bankruptcy Purposes
? Ensure equality of distribution among creditors ? Avoid a race to enforcement ? Maximize value of assets and distributions ? Provide discharge from indebtedness and "fresh start" to debtor ? Rehabilitate financially viable business ? preserve operations and
save jobs ? Provide debtor with time and ability to restructure balance sheet
and business
Oil & Gas M&A Portal | Providing Access to a Library of Insight 5
Why Bankruptcy Causes
? Too much debt ? Not enough liquidity ? Industry/company decline ? Mismanagement and fraud ? Catastrophic event ? Preservation/maximization of value ? Strategic reason (Chapter 11)
? Effectuate a transaction ? Reject leases ? Deal with labor
Oil & Gas M&A Portal | Providing Access to a Library of Insight 6
The Bankruptcy Cast of Characters
? The Bankruptcy Court ? Company / Borrower / Debtor-in-Possession
? Bankruptcy Trustee
? U.S. Trustee ? Creditors
? Secured creditors ? Unsecured creditors ? Creditors' Committee
? Owners / Stockholders
Oil & Gas M&A Portal | Providing Access to a Library of Insight 7
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- chapter 11 overview latham watkins
- chapter 7 fha approved lenders audit guidance 7 1
- chapter 7 loans requiring special underwriting guaranty
- letters of credit in bankruptcy what you need to know
- a survival guide bankruptcy certification
- united states bankruptcy court for the district of
- credit bidding in bankruptcy sales critical issues facing
- chapter 4 credit underwriting overview
- intercreditor issues and relative priorities among
- personal bankruptcy a literature review
Related searches
- chapter 11 psychology answers
- philosophy 101 chapter 11 quizlet
- developmental psychology chapter 11 quizlet
- chapter 11 psychology quizlet answers
- psychology chapter 11 quiz quizlet
- chapter 11 personality psychology quizlet
- chapter 11 management quizlet
- 2 corinthians chapter 11 explained
- 2 corinthians chapter 11 kjv
- chapter 11 lifespan development quizlet
- the outsiders chapter 11 12
- chapter 11 and pension plans