By contrast, America's Chapter 11 has the advantage of enabling the firm to obtain "debtor-in-possession" financing, which is senior to all other types of capital.
With credit markets all but frozen, bankrupt suppliers wouldn't be likely to obtain debtor-in-possession financing to stay in business during bankruptcy reorganization.
Yesterday, Enron and its advisers were in talks with bankers and other lenders about obtaining debtor-in-possession financing, according to executives close to the talks.
(a) When attempting to locate a debtor in order to collect or compromise a debt under this part or other authority, the General Services Administration (GSA) may send a request to the Secretary (or designee) to obtain a debtor's mailing address from the records of the Internal Revenue Service.
Like US Airways, ATA did not obtain conventional debtor-in-possession financing, a standard feature of most bankruptcies.
The U.S. companies are also seeking approval to obtain $5.25 million in debtor-in-possession financing from one or more funds managed by Tenor Capital Management, a firm specializing in convertible arbitrage and special situations.
This article is the first study to use a national random sample to predict which debtors obtain a discharge of debt.
If the debtor cannot obtain such relief, it is a common practice for the debtor to file for Chapter 11 bankruptcy relief, which can buy some time for the debtor to pursue its appeal; however, this can be a bad gamble in particular circumstances, as no state court has anywhere near the immense powers of the federal bankruptcy courts to separate a debtor from his wallet.
But if the debtor wins the appeal, then the debtor can obtain a judgment against the creditor for the amounts that the creditor collected.
What if, as so often happens, the judgment exceeds the net worth of the debtor such that it is impossible for the debtor to obtain such a bond?
Under Chapter 13 of the Bankruptcy Code (Code), a debtor may obtain a discharge of certain government-sponsored student loan debts only if failure to discharge that debt would impose an "undue hardship" on the debtor and his dependents.
