Trustee in DBSI bankruptcy files adversary actions

Introduction

Earlier this month, the chapter 11 trustee (the "Trustee") in the DBSI bankruptcy began filing adversary actions seeking the avoidance and recovery of alleged fraudulent transfers. The Trustee filed the adversary actions against various defendants, some of whom the Trustee identifies as "John Doe 1 -10." This post will look briefly at the DBSI bankruptcy proceeding, why DBSI filed for bankruptcy, as well as some of the events that have transpired since the compnay filed for bankruptcy.

Background

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bond (finance), Bankruptcy, Debtor, Unsecured debt, Collateral (finance), Commercial property, Leasehold estate, Credit crunch, Title 11 of the US Code, United States bankruptcy court, US District Court for District of Delaware, Chief executive officer, Trustee
Authors:
L. Jason Cornell
Location:
USA
Firm:
Fox Rothschild LLP
Valuation in a multi-tiered debt structure

In a recent case1, the High Court concluded that it was right to sanction schemes of arrangement which formed part of a wider debt restructuring that excluded out-of-the-money junior creditors. In doing so, it valued the distressed companies on a going concern basis.

Background

Filed under:
United Kingdom, Insolvency & Restructuring, Litigation, Mayer Brown, Interest, Debt, Economy, Leveraged buyout, Valuation (finance), Debt restructuring, Discounted cash flow, Credit crunch
Authors:
Devi Shah , Ashley Katz , Alexandra Wood
Location:
United Kingdom
Firm:
Mayer Brown