Prior to the COVID-19 pandemic, the Bankruptcy Code generally has been interpreted to require debtors to pay rent obligations on time under unassumed real property leases as those obligations arose post-filing and pre-rejection. This result was driven by 11 U.S.C. § 365(d)(3), which requires the debtor to “timely perform” all obligations until the lease is assumed or rejected, with one narrow exception.
The most important part of the process is assessing the alternative methods to wind down a business, choosing the right approach and executing on the plan.
As financial distress grows due to the pandemic, charitable organizations are faced with two immovable forces–increased demand from hard hit communities and decreased funding due to both the economic hardships facing many donors and the cancellation of most live fundraising events.
Reps and warranties insurance, which has become common in conventional M&A transactions, is now being marketed for use in distressed transactions, including 363 bankruptcy sales. How will that work and can it help facilitate a more robust and competitive sale process?
Minnesota exemptions were recently updated, increasing the amount of assets that individuals may protect.
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?