Serving Up Some Help: How Subchapter V Can Solve Problems for Service Industry Debtors During the Time of COVID-19
As COVID-19 continues to devastate the U.S. and local economies, the service industry in particular has experienced substantial declines in both business and profits. However, the new Subchapter V of Chapter 11 of the Bankruptcy Code and the CARES Act have provided service industry debtors with new and potentially life-saving tools to solve their unique debt issues moving forward.
As Chapter 11 debtors have grappled with the SBA’s surprising anti-debtor stance, a promising strategy has emerged. This strategy does not make sense for every Chapter 11 debtor, but for those Chapter 11 debtors that need additional liquidity and otherwise qualify for a PPP loan, quick action may be necessary.
Steps and strategies for trade vendors to protect themselves in the event a customer may file for bankruptcy during economic disruption.
Professionals should consider the traditional tools for helping troubled businesses but also explore non-traditional methods of solving client problems.
CARES Act Increases The Limits For Small Business Bankruptcy Cases, But How Does A Small Business Bankruptcy Case Work?
It has been widely reported that the CARES Act increased the debt limit for small business bankruptcy cases under Subchapter V of Chapter 11, but how do small business bankruptcy cases differ from normal Chapter 11 cases and what are the benefits for small businesses?
Delaware Governor Jay Carney issued an order that effectively resolves a disconnect between the SEC’s prior guidance for public companies who desire to change the date, time or location of a shareholder meeting due to the public health impact of COVID-19 and the Delaware statutory requirements regarding distribution of an updated notice of a shareholder meeting due to such changes.
On April 8, ISS issued new policy guidance regarding the impact of COVID-19 on ISS’s application of its benchmark and specialty proxy voting policies.
The SEC has issued C&DI Question 104.18 specifying how the 45-day extension period provided by its COVID-19 exemptive order, which was extended through July 1, 2020, by an additional exemptive order, applies to delays in filing Form 10-K Part III information.
In an April 8 joint statement, the SEC’s Chairman and Director of Corporate Finance addressed the importance of providing the public with information to make market decisions in coming earnings releases and investor calls.
On April 3, the SEC’s Chief Accountant issued a statement emphasizing the importance to all market stakeholders of high-quality financial reporting during this period of heightened economic uncertainty.