Postpetition of Finacing of Dot-Coms

73 Pages Posted: 10 Aug 2004  

Scott D. Cousins

Greenberg Traurig, LLP

Abstract

The recent flow and ebb of the economy - precipitated by the boom and bust of the dot-com industry - raises some complex reorganization issues for ailing dot-com companies. The reason for this is attributable in part to the intangible nature of a dot-com's assets, of which valuation in the context of debtor in possession financing can become very challenging. Dot-coms are potentially vulnerable in the context of a Chapter 11 proceeding given their need for cash to maintain operations to either keep the business alive or to sell the business or assets as a going concern - where they will be most valuable.

Creditors' interests also muddy up the waters in a dot-com Chapter 11 proceeding. How can a court ensure that the creditor is adequately protected when the valuation of intangible assets as collateral is concerned? Creditors also need to be aware of the need to perfect their security interests in the assets. Perfection in this context may be complicated by the changing nature of the website which may be deemed new property - requiring additional steps by the creditor in order to preserve its interests.

Keywords: Delaware, Journal, Corporate, Law, Dot-Coms

Suggested Citation

Cousins, Scott D., Postpetition of Finacing of Dot-Coms. Delaware Journal of Corporate Law, Vol. 27, No. 3, 2004. Available at SSRN: https://ssrn.com/abstract=574145

Scott D. Cousins (Contact Author)

Greenberg Traurig, LLP ( email )

The Brandywine Building
1000 West Street, Suite 1540
Wilmington, DE 19801
United States
302-661-7000 (Phone)
302-661-7360 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
100
rank
246,162
Abstract Views
1,610
PlumX