by: Brecht Palombo
Tranzon Auction Properties; Lexington, Mass.
Newspapers across the U.S. are struggling to survive steep declines in advertising revenue and readership. While print declines, the popularity and mainstream use of social and other digital media is exploding. This shift dramatically increases the complexity of reaching bidders and driving liquidation values. The large volume of options presents as many pitfalls as opportunities. Ultimately, disposition professionals who observe an intelligent set of digital media best-practices will help to reduce administrative costs associated with asset sales while achieving superior results.
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by: Dan Rexford
Equity Partners Inc.; Easton, Md.
Experienced professionals know that parties will have varying amounts of leverage as the dynamics of a chapter 11 case unfold, and these professionals carefully take their understanding of this leverage into account when they plan their activities and advise their clients. In many instances, the party with the greatest leverage is often overlooked or given short shrift: the employees.
In virtually every business the employees are critical, but in service businesses, they hold the reins. Demoralized, unmotivated employees can bring a service organization to its knees, causing value to quickly dissipate as the financial statements worsen with each passing month. Employee departures can cause the loss of critical accounts and much-needed revenue. The refusal of a key player to go to work for the buyer, or to sign a noncompete clause, can certainly be the death knell for a transaction.
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by: David Fiegel
GoIndustry DoveBid; Buffalo, N.Y.
Section 362(d)(1) of the Bankruptcy Code provides relief from automatic stay "for cause including the lack of adequate protection." Section 361 defines adequate protection as "providing either cash payments, an additional or replacement lien or 'such other relief as to provide an indubitable equivalent...of interest in such property.'" A secured creditor that is oversecured is often denied a motion to lift the automatic stay based on §362(d).
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Please submit articles for publication in future editions of the Asset Sales Committee newsletter to John H. Maddock, III at jmaddock@mcguirewoods.com.
