In the previous four articles in this series (see here) we looked at the key role of professional investors at startups, though also at the setbacks of the exclusive dependence of these types of companies on equity and the advantages debt would have for them. The environment, as we saw, is also a favorable one for borrowing. We described the difficulty to provide general recipes for getting debt and a few not very promising routes.

En los cuatro artículos anteriores de esta serie (ver aquí) analizamos el papel clave de los inversores profesionales en las 'startups', pero también las desventajas de la exclusiva dependencia de este tipo de empresas del 'equity' y las ventajas que tendría la deuda para ellas. El entorno, como vimos, es además favorable para el endeudamiento. Abordamos la dificultad de ofrecer recetas generales para conseguir deuda y algunas vías no muy prometedoras.

In a recent opinion – In re Heritage Home Group LLC, et al., Case No. 18-11736 (KG), 2018 WL 4684802 (Bankr. D. Del. Sept. 27, 2018) – the Delaware Bankruptcy Court addressed the longstanding issue of which professional persons must be retained under section 327(a) of the Bankruptcy Code.

A fundamental tenet of chapter 11 bankruptcies is the absolute priority rule. Initially a judge-created doctrine, the absolute priority rule was partially codified in section 1129(b)(2)(B)(ii) of the Bankruptcy Code. Under section 1129, plans must be “fair and equitable” in order to be confirmed.

Background: Professionals’ Fees in Chapter 11 cases