News & Analysis as of

Chapter 11 Bankruptcy Court Coronavirus/COVID-19

Cozen O'Connor

Hundreds of Millions Lost by Seniors Due to Bankruptcies Filed by CCRC Communities

Cozen O'Connor on

The Wall Street Journal has reported that recent bankruptcies nationwide in the Continuing Care Retirement Community (CCRC) segment of the long-term care marketplace have resulted in residents losing their buy-in deposit....more

Cornerstone Research

Rising Costs from High Inflation and Interest Rates Contribute to a Continued Increase in Large Corporate Bankruptcy Filings...

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Filings in the services, manufacturing, finance, insurance, and real estate industries contribute to year-over-year increase. Large corporate bankruptcy filings continued to climb in the latter half of 2023 through the first...more

Proskauer Rose LLP

Liability Management – Vaccine or Pandemic? Private Credit Restructuring Year in Review

Proskauer Rose LLP on

Once again, we reflect on the prior year for restructuring trends impacting private credit lenders. Last year it was all about “liability management”—the latest trend in which the limits of sponsor-favorable loan documents...more

Jenner & Block

Recent Developments in Bankruptcy Law Update - July 2022

Jenner & Block on

Covered Activities - 1.1.a Order granting counterclaim declaring validity of mortgage on the debtor’s property does not violate the stay. The debtor acquired property subject to a disputed mortgage. The debtor brought a...more

ArentFox Schiff

Illinois Bankruptcy Court: Preliminary Distributions Lock Subchapter V Plan 

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In an issue of first impression for the jurisdiction, the Bankruptcy Court for the Northern District of Illinois has ruled that a subchapter V debtor “substantially consummated” its plan by paying less than $1,500 in...more

Fox Rothschild LLP

A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As...

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On March 14, 2022, Senator Chuck Grassley (R-IA) introduced proposed legislation that—if enacted—would make permanent the $7.5 million debt limit applicable to debtors under subchapter V of chapter 11 of the Bankruptcy Code...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Holds Debtor-Assignor Is Not Off the Hook for Pre- and Post-Assignment Damages Under Lease Assigned...

If you really want to be released from your lease obligations and those of your assignee, you need to get a landlord release at the time of assignment. An assignor tenant’s lease obligations survive an otherwise permitted...more

Lowenstein Sandler LLP

How to Make a Good Impression in Bankruptcy Court

Lowenstein Sandler LLP on

How should a chapter 11 debtor’s financial information be presented to the bankruptcy court to create the best first impression? To give the court an accurate picture of the results of operations during Chapter 11 and for the...more

Patterson Belknap Webb & Tyler LLP

Unqualified "Cares" Act Funds Can't Be Used To Pay Creditors

U.S. Bankruptcy Judge Craig A. Gargotta rejected a debtor’s attempt to use “CARES Act” funds, which it did not actually qualify for, to pay creditors in its chapter 11 case. BR Healthcare Solutions (the “Debtor”)...more

Sheppard Mullin Richter & Hampton LLP

Nota Bene Podcast Episode 132: 2021 Business Bankruptcy Trends with Ori Katz

The beginning of 2021 saw a decline in business bankruptcy filings, in contrast to the coronavirus-related surge in filings witnessed in 2020. Will this trend continue? Or will bankruptcy filings pick up as more businesses...more

Ward and Smith, P.A.

Struggling Hotels Can Provide Turn-Down Service, Can't Be Turned Down for Subchapter V Bankruptcy

Ward and Smith, P.A. on

Subchapter V of Chapter 11 of the Bankruptcy Code, which took effect in February 2020, creates a more streamlined and less expensive Chapter 11 reorganization path for small business debtors.  It has proven popular during...more

McCarter & English, LLP

Chapter 11 Debtors With Confirmed Plans Are Now Eligible For PPP Loans

The Small Business Administration (SBA) published new guidance declaring Chapter 11 debtors with confirmed plans as eligible for Paycheck Protection Program (PPP) loans. The new guidance creates an exception to the SBA’s...more

Buchalter

Buchalter COVID-19 Client Alert: PPP Loans Now Available to Otherwise-Eligible Companies That Have Ended Their Bankruptcy...

Buchalter on

The Small Business Administration (“SBA”) has made an adjustment to its guidance to provide that entities which have concluded a bankruptcy proceeding are not, for purposes of PPP eligibility, considered in bankruptcy....more

Fox Rothschild LLP

The Delaware Bankruptcy Court Appoints Newest Judge

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On April 6, 2021, J. Kate Stickles was sworn in as a United States Bankruptcy Judge for the District of Delaware. According to an Announcement issued by the Delaware Bankruptcy Court, Judge Stickles fills the seat vacated by...more

Holland & Knight LLP

Frustration of Purpose and Impossibility Doctrines in the COVID-19 Era

Holland & Knight LLP on

In a survey of cases in federal, state and bankruptcy courts, commercial tenants seeking to delay or excuse the payment of rent because of pandemic-related downturns in business sometimes looked to the equitable doctrines of...more

Bradley Arant Boult Cummings LLP

Bradley’s Bankruptcy Basics: 5 Significant (if Temporary) Amendments to the Bankruptcy Code Resulting from the COVID-19 Pandemic

As we cross the one-year anniversary of the COVID-19 pandemic, we reflect on the multiple amendments to the Bankruptcy Code that have been implemented to help curb the effects of various economic shutdowns and financial...more

Morris James LLP

Delaware Bankruptcy Law: One Year Post COVID-19

Morris James LLP on

It has been just over a year since the first known COVID-19 cases and related shutdowns occurred in the US. In early 2020, everything from grocery shopping to global politics was deemed “unprecedented” and “unpredictable.”...more

Pillsbury Winthrop Shaw Pittman LLP

Negative Amortization Chapter 11 Plans as a Potential Bridge Over the Economic Recovery Gap

Hospitality debtors with substantial equity but prolonged depressed revenues due to COVID-19 may find negative amortization, a tool used sparingly pre-pandemic, helpful in the restructuring of mortgage debt under a chapter 11...more

Bowditch & Dewey

Rent Abatement, PPP Loans (Maybe), and Other Bankruptcy Relief in the Appropriations Act

Bowditch & Dewey on

On December 27, 2020, the Consolidated Appropriations Act, 2021 became law. In addition to funding the government and providing coronavirus relief, the Act contains several intriguing amendments to the Bankruptcy Code. The...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Denies Retail Debtor’s State-Law Based Arguments to Avoid Paying Rent During Chapter 11

A recent Chuck E. Cheese decision rejects the debtor’s/tenant’s request to avoid paying rent based upon state law equity arguments. CEC’s leases expressly do not permit rent relief even if force majeure is triggered. ...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Rules Bankruptcy Code Does Not Permit Extended Rent Holiday for Retail Debtors

A recent Chuck E. Cheese decision denies the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday.” The Bankruptcy Court applied the “plain language” rule to hold that section 365(d)(3)’s rent...more

Shumaker, Loop & Kendrick, LLP

Bankruptcy Preference Alert: Bankruptcy Code Temporarily Tilts in Favor of Supplier and Landlord Preference Defendants

For a limited time only, the “Consolidated Appropriations Act, 2021” (CAA) signed into law on December 27, 2020 amends Bankruptcy Code Section 547 to shield certain deferred supplier and rent payments from avoidance as...more

Foley & Lardner LLP

SBA Change of Control Guidance Does Not Work for Insolvent PPP Borrowers

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This article focuses on the recent “change of control” guidance issued by the SBA to its PPP lenders (the “Guidance”) and, more specifically, how that Guidance affects insolvent PPP borrowers when they need to sell assets. As...more

Bowditch & Dewey

Delaying the Inevitable? Pier 1, Chuck E. Cheese, and Rent Abatement in Bankruptcy

Bowditch & Dewey on

The coronavirus pandemic has been particularly cruel to brick-and-mortar retail establishments. As rising infection rates force municipalities to roll back reopening plans, retail and hospitality businesses that rely on...more

McGuireWoods LLP

New “Fair Ground of Doubt” Standard for Alleged Discharge Violations: Tread Carefully

McGuireWoods LLP on

As a result of the economic fallout of COVID-19, more bankruptcies are on the horizon, especially as government aid programs expire and involuntary or voluntary moratoriums on creditor action come to an end. Creditors should...more

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