Financial Advisors and Investment Banking

Financial Advisors: Beware the Pitfalls of Gift Cards

With retailer bankruptcies on the rise, financial advisors need to be aware of the complications and pitfalls associated with gift cards. This article brings to light some of the issues faced when a retailer with a significant amount in outstanding gift cards files for bankruptcy proceedings. Like many problems faced in bankruptcy, gift card challenges can be tackled with solid information, clear communication and planning. To meet these challenges, a financial advisor must understand the liabilities associated with outstanding gift cards.

Bankruptcy Sales Part IV: Factors To Consider When Bringing An Action Under §363(N)

            This is the final article in a four-part series discussing collusion in bankruptcy sales. Part I discussed the prohibition of collusion in bankruptcy sales under §363(n) of the Bankruptcy Code. Part II discussed the difference between permissible collaboration and impermissible collusion. Part III explored the fine line between agreements that control a sales price at an auction versus agreements that only affect the sales price.

The ABI Fee Study and its Effect on Financial Advisors

At the ABI Winter Leadership Conference in December 2007, the Financial Advisors Committee, in concert with the Investment Banking Committee, the Public Company and Claims Trading Committee, and the Professional Compensation Committee had the pleasure of presenting a joint educational session following the presentation of ABI’s landmark Professional Fee Study by Professor Stephen Lubben of Seton Hall University School of Law.

Abandoned in a Time of Need: The Odd Behavior of Brokers, Agents and Insurers During Corporate Restructuring

Why is it so hard to get straight answers or simple assistance from professionals in the commercial insurance industry during a period of corporate reorganization? A partial answer requires us to start with a broad understanding of how companies buy insurance.

Maintaining Cash Reserves While Dealing with Revised §366 of the Bankruptcy Code

The ability of chapter 11 debtors to maintain cash reserves is about to get harder. Hurricanes Katrina and Rita have put a dent in the entire nation's economy and likely will have a significant impact on corporate profits for at least the rest of this year. The storms devastated one of the most critical regions in the country for energy production and already have claimed responsibility for record-high prices for gasoline, heating oil, jet fuel and other products. Economists are predicting that energy prices this winter could double or triple.

Judicial Update July - September 2005

Below are summaries of cases that I thought members of the committee may find interesting. The summaries appear in date order beginning in July. Please contact me at ifredericks@ycst.com with any suggested areas of the law that members would prefer that I focus on, including consumer or business and legal areas of importance (i.e., retention, compensation, plan process, etc.).

PREFERENTIAL PAYMENT ACCORDING TO CONTRACT TERMS IS NOT PER SE “ORDINARY”

Market Conditions for M&A Transactions Are the Best Since 1999

The hardest segment of the Merger & Acquisition (“M&A”) market to obtain meaningful transaction data in terms of price and valuation metrics is the small-to-middle market. The 2004 International Network of M&A Partners (“IMAP”) Worldwide Transaction Survey Results provides such data. IMAP is a private network of M&A firms around the globe. With 60 member firms in 20 countries, it is the largest group of middle-market M&A firms of its kind and it surveys its members on the deals they completed to get a glimpse of current market data.

Judicial Update April - June 2005

Included are summaries of cases that I thought members of the committee might find interesting. The summaries appear in date order beginning in April. Please contact me with any suggested areas of the law that members would prefer that I focus on, including consumer or business and legal areas of importance (i.e., retention, compensation, plan process, etc.).

Financial Advisors and Investment Banking May 2005

Summary of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act (hereinafter, the “BAPCPA” or the “Act”). The Act has an effective date of October 17, 2005 and, with some exceptions, its provisions will apply only to cases filed after the effective date.