Secondary Market for Buying and Selling Chapter 11 and Chapter 7 Bankruptcy Claims - Trade Claims, Administrative Claims, Unsecured Claims and 363 Sales Data

Bankruptcy Claims

Market Description

Bankruptcy claims are monies owed to creditors by companies that typically have filed for Chapter 7 or Chapter 11 bankruptcy. Creditors range from secured and unsecured bond and loan holders, to trade vendors and service providers. Bankrupt companies often have thousands of claimholders- and as a result of protections provided by the court to these corporate debtors, many creditors are left holding overdue accounts receivable that cannot get paid until the completion of the bankruptcy process. Generally speaking, unsecured bonds have a relatively well-established market, as they were originally part of a formal securities offering and were well documented. Unsecured claims, however, until recently had no apparent established marketplace, and represent a large portion of the $1 trillion in bankruptcy claims. Given the unprecedented level of bankruptcy filings that have taken place recently and will continue to occur, bankruptcy claims stands to be one of the largest untapped asset classes out in the marketplace.

Regent Files Bankruptcy to Give Lenders Radio Company — www.businessweek.com

Regent Communications, the owner and operator of 62 radio stations in 13 markets, has filed for bankruptcy with about $211 million in debt
The company plans to eliminate $87 million through a debt for equity conversion that would will give control of the company to its creditors
Under the current plan Oaktree Capital Management will become the majority owner of Regent once it exits bankruptcy

Mar 10 2010

Six Flags Creditors See Signs Of Merger With Cedar Fair — online.wsj.com

Speculation of a merger between Cedar Fair and Six Flags have begun to come to light even before Six Flags has left bankruptcy
Representatives of Avenue Capital, who has committed to raise $450 million in equity for Six Flags, have apparently held talks with the leadership of the rival amusement park operator
Some bondholders speculate that a merger could greatly improve the recoveries they see from Six Flags bankruptcy case

Mar 9 2010

Extended Stay Seeks to Exit Bankruptcy — online.wsj.com

Extended Stay filed a plan of reorganization on Friday proposing that its secured lenders join Paulson & Co and Centerbridge Partners to provide exit financing for the hotel chain
Paulson & Co and Centerbridge will invest a total of $225 million for a 22.5% stake in the company, while the holders of $4.1 billion in mortgage debt will receive new mortgage notes totaling $2.5 billion and a 55% stake
Extended Stay also plans to raise $225 million through a rights offering