E7: Bankruptcy and Restructuring (Part 2) featuring Mary Elizabeth Heard, Esq.
In this conversation, Mary Elizabeth Heard discusses the intricacies of bankruptcy law, focusing on pre-packaged bankruptcies, the broader concept of restructuring, and the impact of the Great Recession on these processes. She emphasizes the importance of a sound bankruptcy system in facilitating economic vibrancy and innovation. The discussion also covers the 363 sale process, which allows for the sale of assets free and clear of liens, and highlights the creative aspects of bankruptcy law that can lead to successful outcomes for distressed companies.
Takeaways
- Restructuring work can be done before filing for bankruptcy.
- Pre-packaged bankruptcy allows for negotiations with lenders before court involvement.
- Restructuring is not inherently negative; it can involve reorganizing debt and company structure.
- Bankruptcy is often a last resort for companies trying to avoid public scrutiny.
- The Great Recession led to widespread awareness of inflated property valuations.
- A sound bankruptcy process is crucial for economic vibrancy and innovation.
- The American bankruptcy system is more favorable compared to other countries' systems.
- A 363 sale allows for the sale of property free of liens, providing clean titles.
- Auctions in bankruptcy are beneficial for creditors and can maximize asset value.
- Bankruptcy can be a creative process that leads to rebirth and new opportunities.
Chapters
00:00 Understanding Pre-Packaged Bankruptcy
06:24 The Broader Concept of Restructuring
11:45 The Impact of the Great Recession on Restructuring
16:53 The Importance of a Sound Bankruptcy Process
22:47 Exploring 363 Sales in Bankruptcy
30:49 The Creative Process of Bankruptcy
Creators and Guests
Host
Roland Wiederaenders
Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate securities attorney with expertise in private investment funds, corporate/securities issues, mergers and acquisitions, partnership structuring, and federal income tax matters. Roland is also a member of Grable Martin PLLC.
Host
Sarah Florer
Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate attorney with expertise in corporate finance and securities, structuring and restructuring, and commercial matters. Sarah is also a member of Grable Martin PLLC.
Producer
Anthony Carrano
Co-founder of the Alt Investing Made Easy podcast, fractional Chief Marketing Officer, entrepreneur, and Managing Partner at Dunamis Marketing.
