Debt Equity: Recharacterization of Debt in Bankruptcy Proceedings – and What to Do About It (2015) | South Bay Law Firm
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Debt Equity: Recharacterization of Debt in Bankruptcy Proceedings – and What to Do About It (2015)

Category
Bankruptcy, Insolvency, Liquidation
About This Project

Summary:

 

A Common Scenario:

 

  • A client invested in a real estate or commercial venture that is now struggling.
  • The client decides to “prop up” the initial equity investment with a loan that should fund the venture until it recovers.
  • Recovery never arrives.
  • Other creditors argue the loan should be recharacterized as “equity.”
  • What happened?

 

Power Point slides from this privately-hosted 2015 webinar on the use of recharacterization of debt in bankruptcy proceedings are accessible here.

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