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 16 2010

Lehman Brothers Files Plan for Liquidation With Court — www.businessweek.com

Lehman Brothers has filed an initial bankruptcy plan with the court outlining how the company plans to divide up its assets
While the plan did not cover expected recoveries, it listed over 130 classes of creditors
While Lehman plans to liquidate most of its assets, the company will hold onto some units including real estate, uranium and asset management opperations

Mar 15 2010

Lyondell Reorganization Terms Approved Over Objections on Value — www.businessweek.com

Judge Gerber has paved the way for Lyondell to exit bankruptcy, overruling objections over the valuation of the company
A group of creditors had argued that the $15.2 billion valuation of the company was artificially low
The ruling brings Lyondell one step closer to achieving its planned exit from bankruptcy on April 30th