Face amount
The stated amount of the claim being evaluated, which can differ from the amount ultimately allowed or paid.
Claims trading glossary
The terms behind the transaction.
A practical starting point for reading an offer. The signed agreement and applicable case orders govern your transaction.
Consideration
The value exchanged for the purchased rights, such as the negotiated cash purchase price.
Holdback
A portion of consideration retained subject to specified conditions. Review whether, when, and how it becomes payable.
Recourse
Contractual rights to seek repayment or another remedy in specified circumstances. The scope depends on the agreement.
Bar date
A deadline established under the applicable rules or a court order for submitting certain claims. Check the actual notice for scope, exceptions, and filing instructions.
Proof of claim and scheduled liability
A proof of claim is a creditor’s filing asserting a claim. A scheduled liability is listed in the debtor’s schedules. Whether a separate filing is required depends on the case, claim, and applicable rules.
Evidence of transfer
The documentation used to record a transfer through the applicable procedure. The requirements differ depending on matters such as whether a proof of claim has already been filed.
Source: U.S. Courts: Chapter 11 basics.
General educational information. The actual agreement and case circumstances control; discuss legal, tax, and financial questions with your advisers.
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