Distressed Claim Trading: Legal Risks and Options

March 06, 2007
Audio Conference
Andrew H. Sherman
The Beard Group

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.