The sale of Bankruptcy Remnant Assets has become a popular method to help wrap up commercial bankruptcy cases. Specifically, more and more Trustees and Plan Administrators are generating an additional recovery for creditors by selling off the rights to any remaining “cats and dogs” in a bankruptcy estate for cash, even in situations without any remaining known assets.
Trustees receive a little more cash for the estate prior to its closing, and Oak Point receives the rights to anything that might trickle in after the case is closed. This can also allow Trustees to monetize with certainty items that may or may not ultimately pay out.
Beyond just generating additional cash for creditors, a sale of the Remnant Assets accommodates the expanding notion that bankruptcy cases need to get to Final Decree instead of continuing to linger. In addition, the sale provides a complete and final wrap-up of the case, thus freeing up professionals to focus on winning more business.