REMNANT
PORTFOLIOS
The “Remnant
Sale” is fast-becoming a popular method to maximize asset recovery
for creditors. Specifically, more and more trustees and plan administrators
are generating an additional recovery for creditors by selling off the
remaining “cats and dogs” in a bankruptcy estate for cash,
even in situations without any remaining known assets. Beyond just generating
excess cash, the parties involved are also finding that a catch-all
Remnant Sale accommodates the expanding notion that bankruptcy cases
need to get to Final Decree instead of continuing to linger.
Advantages
of the Remnant Sale: Professionals are increasingly pursuing
Remnant Sales for a range of key reasons, including:
- Maximize cash
for creditors
- Monetize with certainty items that may or may not ultimately pay
out
- Provide a complete and final close
- Address the Office of the United States Trustee's aim to wrap up
cases
- Free up professionals to focus on winning more business
