Buying assets or an on-going business from a company while it is in bankruptcy can be an excellent means of acquiring valuable assets at bargain prices, free and clear of liens, claims, encumbrances and other interests. There are risks that accompany these acquisitions, however—risks that potential buyers need to understand.

rutland & partners know those risks and can help you with:
• Understanding the legal framework of bankruptcy and restructuring
• Submitting bids that comply with court-mandated procedures
• Avoiding liability as successor in interest for liens and other claims against the debtor
• Identifying other possible issues affecting a purchase of the assets of a debtor in bankruptcy

A bankruptcy proceeding can significantly affect the actual recovery for creditors, secured and unsecured alike. An inattentive creditor can possibly waive his rights, be compelled to return money to the bankruptcy estate or, in extreme instances, be subjected to sanctions and other penalties. On the other hand, bankruptcy provides opportunities for debtors to obtain a breathing spell from pending litigation, restructure existing financial obligations and seek relief from burdensome contracts and leases. We can guide our clients through the bankruptcy planning and filing process and provide assistance with selling assets, addressing employment-related issues, and representing the debtor in litigation.

rutland & partners attorneys have experience in:

• Planning and filing bankruptcy cases for debtors, and representing them through to a final discharge or other disposition of indebtedness
• For creditors, finding the best options to preserve the value of their claims to the maximum extent and representing their interests in litigated bankruptcy proceedings

In the Czech Republic, the Insolvency Court decides whether the debtor is actually insolvent and, if so, which type of insolvency proceedings will be conducted. Upon a declaration of insolvency by the Court, the insolvency is then dealt with as a bankruptcy, reorganization or debt clearance. Reorganizations are available to larger debtors. In a reorganization, the debtor’s business is preserved and operated pursuant to an approved reorganization plan under the supervision of the creditors. In such cases, rutland & partners attorneys can assist in:

• Filing insolvency petitions and litigating the issue of insolvency
• Negotiating and obtaining court approval of a reorganization plan
• In appropriate cases, applying to turn a reorganization into a full-fledged bankruptcy