Bloomberg reports on the growing use of chapter 11 bankruptcy by large retail tenants in order to negotiate their way out of costly, long-term leases and the potential downstream effects of this process on both the commercial real estate and commercial mortgage backed securities markets. [Bloomberg; Aug. 6, 2020]
The Wall Street Journal reports that in spite of substantial levels of financial aid from federal governments, there were 580 chapter 12 bankruptcy filings by family farmers between June 2019 and June 2020, which is an increase of 8% year-over-year. [WSJ; Aug. 6, 2020]
In Artesanias Hacienda Real S.A. De C.V. v. North Mill Capital, LLC, the Third Circuit Court of Appeals held that creditor Artesanias Hacienda Real SA de CV retained constitutional standing and statutory authority to pursue fraudulent transfer claims against the debtor/defendant, North Mill Capital, LLC, even though its chapter 7 bankruptcy trustee elected not to pursue such claims. [3rd Cir.; Aug. 4, 2020].
Reporting from Forbes discusses the potential impact of widespread bankruptcies by large, well-known companies on consumers, concluding that the substantial number of bankruptcy filings by such companies may ultimately lead to marketplace consolidation and reduced consumer choice. [Forbes; Aug. 4, 2020]