CNN reports that fast-casual dining chain Ruby Tuesday, Inc. filed for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware on October 7, 2020. Ruby Tuesday reportedly plans to close approximately 45% of its locations as part of its restructuring efforts. [CNN; Oct. 7, 2020]
Bloomberg reports that the Netherlands recently approved a new corporate debt restructuring law on Tuesday October 6, 2020. The new law features elements of both U.S. Chapter 11 procedures and U.K. schemes of arrangement and aims to boost the appeal of the Netherlands as a jurisdiction to restructure corporate debt. [Bloomberg; Oct. 7, 2020]
Reporting from the Wall Street Journal indicates that commercial real estate experts anticipate an uptick in commercial mortgage foreclosures as a result of the continuing economic effects of the COVID-19 pandemic. One source noted that he “expects foreclosures in commercial real estate caused by the pandemic to be far worse than what happened during and after the 2007-2009 recession, when properties backing tens of billions of dollars in commercial mortgages ended up in foreclosure.” [WSJ; Oct. 6, 2020]
U.S. commercial bankruptcy filings are up 33% in 2020 as of the end of September 2020, reports Reuters. New commercial bankruptcy filings in September 2020 were up 78% over new commercial bankruptcy filings in September 2019. [Reuters; Oct. 5, 2020]