Table of Contents

• Jurisdiction: United States

Table of Contents

Using the Guide

Chapter 1 The Purpose of A Practitioner's Guide................................1

Chapter 2 Overview.........................................................................5

Section I: Introduction to Liquidation Trusts

Chapter 3 Federal Bankruptcy Proceedings........................................9

A. Origins.........................................................................................................................10

B. U.S. Laws......................................................................................................................11

C. Types of Bankruptcy Filings......................................................................................11

D. Voluntary and Involuntary Bankruptcy Filings.....................................................14

E. The Debtor in Possession and Other Parties...........................................................16

F. Creditor Committees.................................................................................................18

G. Absolute Priority Rule................................................................................................18

H. Some Key Terms and Concepts................................................................................19

I. The Process for Plans of Reorganization or Liquidation.......................................22

J. Disbursing Agents, Plan Administrators and Trustees..........................................24

K. Jurisdiction..................................................................................................................25

L. Preference and Fraudulent Transfer Litigation.......................................................26

M. Conclusion..................................................................................................................29

Chapter 4 Key Concepts Underlying the Use of Liquidation Vehicles 31

A. Alternative Forms of Liquidation .............................................................................32

1. Assignments for the Benefit of Creditors.........................................................32

2. State Court Receiverships ...................................................................................34

3. Federal Equity Receiverships.............................................................................35

4. Out-of-Court Workouts......................................................................................36

5. Overall Assessment of Alternatives...................................................................37

B. Advantages of These Alternatives over Bankruptcy...............................................38

C. Advantages of Bankruptcy........................................................................................39

D. Plan Administrators and Disbursing Agents..........................................................40

E. Liquidation Trusts......................................................................................................42

F. Advantages and Disadvantages of Liquidation Trusts ........................................... 43

G. Alternate Forms of Liquidation Trusts .................................................................... 46

H. The Liquidation Trustee as Fiduciary......................................................................47

I. Conclusion......................................................................................................... 49

Chapter 5 Bankruptcy Trends and Developments in Applying Liquidation Trusts............................................................51

A. Key Trends .............................................................................................................................. 52

B. Large Company Filings ........................................................................................................ 53

C. Case Mix ...................................................................................................................... 55

D. Sales of Assets.............................................................................................................. 56

E. Out-of-Court Restructurings.................................................................................... 58

F. Prepackaged Cases ..................................................................................................... 59

G. Case Duration ............................................................................................................. 60

H. Conventional vs. Prepackaged Bankruptcy ............................................................ 61

I. Conclusion .................................................................................................................. 62

Section II: Liquidation Trusts

Chapter 6 Defining the Liquidation Trust...........................................63

A. Beneficiaries of the Trust...........................................................................................64

B. Benefits of a Liquidation Trust.................................................................................65

1. Increased Speed...................................................................................................65

2. Improved Timing.................................................................................................66

3. Greater...