License and Asset Transactions Involving Financially Distressed Licensees
Our firm regularly works with creditors' counsel and bankruptcy lawyers regarding license transfers. Although an alcoholic beverage license is clearly an asset, it cannot be seized or operated by creditors through foreclosure or bankruptcy proceedings without participation by the ABC. Similarly, creditors cannot count on obtaining security interests in alcoholic beverage licenses or inventories unless attention is given to complying with alcoholic beverage regulations and provisions of the Uniform Commercial Code that apply to alcohol.
We advise clients about protecting their interests before entering into agreements with producers, hotels, or restaurants.
We have:
- Protected a hotel's ability to operate during the course of adverse litigation between restaurant tenant and hotel owner.
- Drafted bankruptcy court orders in conjunction with bankruptcy counsel.
- Advised winery creditors on the best ways of transferring control of a defaulting winery.
- Coordinated the sale of licenses held by a large on-premise retail chain during the course of a real estate sale.
Contact: Lynne Carmichael
