E7: Bankruptcy and Restructuring (Part 2) featuring Mary Elizabeth Heard, Esq.

Alt Investing Made Easy

Summary

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