E6: Bankruptcy and Restructuring (Part 1) featuring Mary Elizabeth Heard, Esq.

Alt Investing Made Easy

In this episode of Alt Investing Made Easy, hosts Roland Wiederaenders and Sarah Florer discuss the complexities of bankruptcy law with attorney and expert Mary Elizabeth Heard. They explore the significance of bankruptcy in the investment landscape, particularly for small businesses and innovation. The conversation delves into the different types of bankruptcy, the role of bankruptcy courts, and the implications for investors regarding debt and equity during bankruptcy proceedings. The episode emphasizes the importance of understanding bankruptcy as a tool for financial recovery and innovation in the business world.

Takeaways

• America's economy is built on small businesses.
• Bankruptcy law is crucial for understanding investment opportunities.
• There are different types of bankruptcy: Chapter 7 and Chapter 11.
• Bankruptcy can be a positive process for restructuring businesses.
• Investors need to understand the implications of bankruptcy on their investments.
• Bankruptcy courts are specialized and focused on unique problems.
• The concept of a 'fresh start' is vital in bankruptcy.
• Old equity may be wiped out during bankruptcy proceedings.
• Investing in debt can provide better protection than equity in bankruptcy.
• Disclosure issues are critical for public companies during bankruptcy.

Chapters

00:00 Introduction to Alternative Assets and Bankruptcy Law

02:51 Understanding Bankruptcy: Types and Importance

11:55 The Role of Bankruptcy in Supporting Innovation

19:05 Navigating Debt and Equity in Bankruptcy

25:49 Conclusion and Future Insights on Bankruptcy