Distressed Claim Trading: Legal Risks and Options

The trading of claims is a familiar practice in bankruptcy cases both as a short-term investment vehicle and a long-term opportunity with the intention of obtaining a strategic position in the confirmation process. During this audio conference hosted by The Beard Group, Andrew Sherman, a Member of the Firm's Creditors' Rights & Bankruptcy Reorganization Practice Group, will discuss:

• Reasons for a transferee's claim against a bankrupt's estate being subordinated or disallowed
• The financial ramifications of a transferee’s claim being subordinated.
• Consideration of purchasing or contract to purchase only a distribution right - the economic component of the claim.
• Federal Securities laws’ restrictions on insider trading
• Inclusion of contractual protections when drafting any sale of claims document.