The goals of this course are the understanding of the fundamental issues, potential outcomes and effects of those outcomes on the reorganization effort in a chapter 11 bankruptcy context through legal analysis and practical application of legal theory.
The "case study" model will be used to achieve these goals. The case study will involve examining a business that falls on hard times and, after meeting with counsel and after unsuccessfully trying to work out its financial problems with its largest creditor, finds itself in chapter 11 either through a voluntary or involuntary petition.
The course will examine the basic structure of client meetings and negotiations before the filing, several "first day" motions and proceedings filed when the case is commenced (cash collateral, debtor in possession financing, utility deposits, appointment of counsel, use of existing bank accounts and forms, payments of priority payroll expenses), some business issues and motions that result from those issues (such as a utility that threatens to shut off power, a lessor that wants its space back, a reclamation creditor demanding its goods back, a secured creditor who deems itself undersecured and files a motion for relief from stay), and, after these are resolved, the basic negotiations and structure of the disclosure statement and plan of reorganization. (Note: the section 341 meeting of creditors is covered in depth in the basic Bankruptcy Law course and will not be repeated in this course.)