The Restructuring Report

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.