Publications
Bankruptcy Claims Sellers Should Consider All Risk Elements
Bloomberg Law
August 2023
In an article for Bloomberg Law, Schulte partner Doug Mintz, special counsel Neil Begley and associate Robert Brown, with contributions from partner David Karp, discuss various aspects of bankruptcy claims trading, including the three general categories of claims trading risks, claim impairment, and four methods for allocating impairment.
Over the past year, digital asset investors have become acutely aware of asset custody and counterparty credit risks due to the high-profile bankruptcies of Voyager, Celsius, BlockFi, and FTX. These investors have found that, at times, their assets may be stuck in a bankruptcy proceeding for years. However, these investors — now bankruptcy claim holders — have options for more immediate liquidity.
Reproduced with permission. Published Aug. 11, 2023. Copyright 2023 Bloomberg Industry Group 800-372-1033. For further use, please visit https://www.bloombergindustry.com/copyright-and-usage-guidelines-copyright/.
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