In the July/August issue of our Community Banker newsletter we talk about Chapter 11 bankruptcies and how they can be handled without fear.
An excerpt:
A bankruptcy filing need not strike fear into the heart of a lender; in fact, sometimes the debtor’s bankruptcy filing is better for the bank. That’s because the debtor will be under the supervision of the bankruptcy court and has to answer to it. If the debtor files for Chapter 7 or 13, there will be a court-appointed trustee to keep an eye on the collateral. If the debtor files for Chapter 11, the debtor will be a debtor-in-possession and can continue to operate the business, but it also has certain fiduciary obligations -0 it can’t just squander the assets.
You can continue reading in our July/August issue.
To read past Community Banker issues, check out our newsletter page.
The Community Banker is prepared by attorneys at Olson & Burns P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to olsonpc@minotlaw.com.
