Attorneys representing distressed businesses can use several options to assist their clients with Covid-era EIDL loans when they need to sell the business for less than the outstanding loan balance. One approach recommended by the SBA is to request a consensual lien release. This article explains how that process works, provides practical tips and outlines realistic timelines.
A recent Third Circuit case highlights how even a single overlooked prior representation can lead a court to question counsel’s compliance with Bankruptcy Rule 2014. This case, In re Black Diamond Energy, provides an excellent reminder to lawyers that Rule 2014 requires not just truthful disclosures but also a reasonably diligent inquiry supported by reliable internal systems.
The Fourth Circuit recently addressed whether bankruptcy courts have subject matter jurisdiction over a case filed by an arguably “solvent debtor,” resulting in three separate written opinions and a split decision on the issue.
After the Eighth Circuit ruled that Chapter 5 avoidance actions could be sold by a trustee or debtor in possession, many commentators raised the question of whether the debtor could grant a pre-petition security interest in those causes of action to a lender. A recent decision by the United States District Court for the Northern District of Iowa, on appeal from the bankruptcy court, provides one answer to that question.
In Subchapter V cases, the confirmation of a consensual, rather than a nonconsensual plan, carries significant benefits. How should the courts treat classes of creditors that do not vote on the plan? Can the failure to vote render the plan nonconsensual?
Nearly five years after the enactment of the Small Business Reorganization Act, what are the emerging trends for Subchapter V cases?
Minnesota’s beer industry faces significant financial obstacles, but certain financial tools may allow craft breweries to weather the storm and ensure their survival.
Effective July 1, 2024, the applicable dollar amounts of certain Minnesota exemptions were increased, and effective August 1, 2024, Minnesota implemented significant changes to its exemptions.
Nearly 2 million nonprofits are registered with the IRS, and the National Center of Charitable Statistics reports that about 30% of nonprofits close within 10 years. How do directors and officers of nonprofits satisfy their fiduciary obligations when a nonprofit faces economic difficulties and insolvency?