Finstar shows that receivership can be a double-edged sword for creditors without direct first-ranking security over the underlying assets. The collective sale process they initiate may produce an outcome they had hoped to avoid. Before applying, a creditor should assess priority rankings, the receiver’s independent role, the realization strategy, and the potential cost allocation.
Solvent third parties: what contribution warrants protection?
The ACL restructuring offers a different perspective on proceedings driven partly by stakeholders other than the debtor. ACL is a Québec company that stopped mining asbestos decades ago, and it faced thousands of asbestos-related claims in the United States. It resisted…