United States Bankruptcy Court for the District of Maryland (21) days after service of the motion, plus any additional time required by Federal Bankruptcy Rules (a) and (f). stalking horse” bidder receive a “credit” equal to the breakup or topping fee and or expense reimbursement when bidding at the auction and in such case. Jun 10, · United States: Mothballing Bankruptcy Cases In or otherwise by the court of appeals under section (d), , or of title 28 or by the Supreme Court of the United States under section of title the bankruptcy auction of its assets scheduled for March 30 after no qualified bids were received by the bidding deadline and the. Introduction. On May 1, , Magna Entertainment (“Magna”) filed a motion in the United States Bankruptcy Court for the District of Delaware whereby it sought authority to schedule an auction, receive approval of auction bid procedures and proceed with the sale of assets (the “Sale Motion“).). I have previously written about bankruptcy sale .
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Creative Hairdressers, in conjunction with Carl Marks Advisors, LLC, its court-approved financial advisor, is soliciting bids from interested parties for all or a subset of its assets from strategic and financial bidders. The bid deadline is May 21, at pm. If Creative Hairdressers receives one or more qualified bids, it will conduct an auction for the sale of the assets on May 28, at p.
Inquiries regarding the asset sale should be directed to Marc Pfefferle of Carl Marks Advisors at mpfefferle carlmarks. Creative Hairdressers, Inc. The company began in to create a quality whole-family salon where stylists could make a good living. Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the U.
This meeting is informally called a " meeting" because section of the Bankruptcy Code requires that the debtor attend this meeting so that creditors can question the debtor about debts and property.
A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial "fresh start" from burdensome debts. The Supreme Court made this point about the purpose of the bankruptcy law in a decision:. Local Loan Co. Hunt , U. This goal is accomplished through the bankruptcy discharge, which releases debtors from personal liability from specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts.
This publication describes the bankruptcy discharge in a question and answer format, discussing the timing of the discharge, the scope of the discharge what debts are discharged and what debts are not discharged , objections to discharge, and revocation of the discharge.
It also describes what a debtor can do if a creditor attempts to collect a discharged debt after the bankruptcy case is concluded. Six basic types of bankruptcy cases are provided for under the Bankruptcy Code, each of which is discussed in this publication. The cases are traditionally given the names of the chapters that describe them. Chapter 7 , entitled Liquidation, contemplates an orderly, court-supervised procedure by which a trustee takes over the assets of the debtor's estate, reduces them to cash, and makes distributions to creditors, subject to the debtor's right to retain certain exempt property and the rights of secured creditors.
Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor's assets. These cases are called "no-asset cases. In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts.
The debtor normally receives a discharge just a few months after the petition is filed. Amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of require the application of a "means test" to determine whether individual consumer debtors qualify for relief under chapter 7.
If such a debtor's income is in excess of certain thresholds, the debtor may not be eligible for chapter 7 relief. Chapter 9 , entitled Adjustment of Debts of a Municipality, provides essentially for reorganization, much like a reorganization under chapter Only a "municipality" may file under chapter 9, which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts. Chapter 11 , entitled Reorganization, ordinarily is used by commercial enterprises that desire to continue operating a business and repay creditors concurrently through a court-approved plan of reorganization.
The chapter 11 debtor usually has the exclusive right to file a plan of reorganization for the first days after it files the case and must provide creditors with a disclosure statement containing information adequate to enable creditors to evaluate the plan.
The court ultimately approves confirms or disapproves the plan of reorganization. Under the confirmed plan, the debtor can reduce its debts by repaying a portion of its obligations and discharging others. The debtor can also terminate burdensome contracts and leases, recover assets, and rescale its operations in order to return to profitability. Under chapter 11, the debtor normally goes through a period of consolidation and emerges with a reduced debt load and a reorganized business.
Chapter 12 , entitled Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income, provides debt relief to family farmers and fishermen with regular income.
The process under chapter 12 is very similar to that of chapter 13, under which the debtor proposes a plan to repay debts over a period of time — no more than three years unless the court approves a longer period, not exceeding five years.
There is also a trustee in every chapter 12 case whose duties are very similar to those of a chapter 13 trustee. The chapter 12 trustee's disbursement of payments to creditors under a confirmed plan parallels the procedure under chapter Chapter 12 allows a family farmer or fisherman to continue to operate the business while the plan is being carried out. Chapter 13 , entitled Adjustment of Debts of an Individual With Regular Income, is designed for an individual debtor who has a regular source of income.