Legal Question in Bankruptcy in Tennessee

regarding funding of public co. while in bankruptcy

once a public company has a filed petition of involu. bankrutcy against it, can that company still do private placements without the permission of the courts or is notification needed before doing the private placement. what code governs this, (debtor in possession)? from what date does the company need to start to request the courts permission? i am looking for the proceedures that should followed. thank you


Asked on 7/03/01, 11:12 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: regarding funding of public co. while in bankruptcy

Typically, a debtor in an involuntary bankruptcy is seeking a very quick determination of its status, thus the situation of having to seek permission to operate does not usually come up. Generally, a Chapter 11 debtor needs judicial permission to liquidate any of its assets, but not typically to handle most of its everyday transactions. This case is governed by Title 11 of the United States Code, which is the bankruptcy code and can be found online at any number of locations.

If you have any questions, or would like any follow-up, please do not hesitate to contact me.

Read more
Answered on 7/03/01, 12:34 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Tennessee