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Why Subordinate Creditors Do Not Challenge Article 9 Sales

Video | May 2, 2019

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CEO Adam Duso explains why subordinate creditors almost never have incentive or grounds upon which to object to an Article 9 short sale approved by the first position creditor.

Article 9 sales preserve core operational value, creating incentives for all parties in the transaction. Secured creditors recover maximum value on their collateral, and subordinate creditors can write those toxic assets down quickly while taking advantage of the tax write-offs associated with their failed investment.

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