The company, which filed the largest bankruptcy in American history, has been in a year-long battle over the terms of its bankruptcy. Yet from July to August, overall bankruptcy claims traded fell from 1,352 to 891. In monetary terms, the drop was significant: $3.55 billion in July to $2.22 billion in August.
Bankruptcy claims trading is vital for creditors who are trying to recover some of their losses. They can trade their stake in a bankruptcy, which is generally sold in cash. The investor, oftentimes a hedge fund investor, will then take this claim and bank on getting a large return once the bankruptcy settlement has been completed.
Other companies also saw a decline in claims trading, including a restaurant chain, a telecommunications company and a college bookstore franchise.
If you need help filing for bankruptcy in Texas, take the time to contact the Malaise Law Firm to set up a consultation with a San Antonio bankruptcy attorney. We can help you get through difficult financial times.