Summary:
A Common Scenario:
- A client invested in a real estate or commercial venture that is now struggling.
- The client decides to “prop up” the initial equity investment with a loan that should fund the venture until it recovers.
- Recovery never arrives.
- Other creditors argue the loan should be recharacterized as “equity.”
- What happened?
Power Point slides from this privately-hosted 2015 webinar on the use of recharacterization of debt in bankruptcy proceedings are accessible here.
