TRADE CLAIMS

During U.S. Chapter 11 proceedings, a company in bankruptcy files a Schedule of Liabilities, and creditors occasionally file a Proof-of-Claims with respect to relevant debt.  Longacre's debt sourcing team accesses these documents through bankruptcy court or claims agent websites to identify potential trade claim counterparties. Longacre's principals determine appropriate pricing for claims and the firm's debt sourcers then contact creditors to negotiate purchase of such claims. 

Once Longacre and a creditor have agreed on a price, Longacre's trade claims administration team receives supporting documentation from and performs due diligence on creditors; our financial/accounting group then enters trades into our internal spreadsheets. General Counsel or trade claims administrators then draw up an Assignment-of-Claim sale agreement. Once Longacre has received an executed Assignment-of-Claim, trade claim administrators arrange for payment to the creditor and file an Evidence of Transfer of Claim with the bankruptcy court.

For more information about our Trade Claims department, please call 212-259-4300.