Cadwalader partner Douglas Mintz was recently quoted in Bloomberg Law on the unusual Chapter 7 liquidation of subprime auto lender Tricolor, which abruptly ceased operations across six states.

Doug noted that the lack of transparency, loss of management control, and absence of a clear timeline all suggest a “messy path ahead, particularly for creditors.”

He further pointed out that even cryptocurrency exchange FTX, which collapsed suddenly amid fraud allegations in 2022, opted for Chapter 11 rather than Chapter 7.

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