On January 14, 2021, the Supreme Court held in City of Chicago v. Fulton that a creditor does not violate the automatic stay by merely retaining possession of the debtor’s property after a bankruptcy filing. The City of Chicago routinely
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Nine Bankruptcy Code amendments included in latest appropriations bill
On December 27, 2020, the Consolidated Appropriation Act (“CAA”) was signed into law. The nearly 5,600-page bill is reportedly the longest bill ever passed by Congress. In addition to funding the federal government in 2021 and providing COVID-related relief to…
Blog Browse: As COVID-19 prompts more retail tenant bankruptcies, how should landlords and lenders respond?
Businesses that were already struggling before the COVID-19 pandemic hit the United States are now facing the consequences of having to close their doors during the public health crisis. With more bankruptcies likely on the horizon as the economy reels…
Blog Browse: As COVID-19 prompts more retail tenant bankruptcies, how should landlords and lenders respond?
Businesses that were already struggling before the COVID-19 pandemic hit the United States are now facing the consequences of having to close their doors during the public health crisis. With more bankruptcies likely on the horizon as the economy reels…
Chicago Bankruptcy Court holds rent may be reduced during Chapter 11 proceedings due to COVID-19 shutdown orders
By Publisher
A Chicago bankruptcy court recently ruled in In re Hitz Restaurant Group that a debtor’s obligation to pay rent during its bankruptcy case may be temporarily reduced because of a force majeure clause in the lease and the governor’s COVID-19…
Payday before mayday: The increasing use of pre-bankruptcy executive retention bonuses
The initial wave of post-COVID Chapter 11 business bankruptcies has revealed an increasing tendency for senior executives of financially distressed companies to award themselves substantial bonuses and similar forms of compensation immediately before placing their companies into bankruptcy. If this…
Why the return of NOL carry backs may be good news for some distressed corporations
A little noticed provision in the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) may provide distressed corporations with a much needed liquidity boost. The CARES Act restores the ability of corporations to carry back net operating losses…
Financial distress of the COVID-19 pandemic on not-for-profits
Charitable institutions and not-for-profit entities (NFPs) are particularly vulnerable to financial distress because of the COVID-19 pandemic. Like most for-profit entities, NFPs are experiencing a momentous disruption in their business operations and the revenue derived therefrom. That in itself is…
Financial distress of the COVID-19 pandemic on not-for-profits
Charitable institutions and not-for-profit entities (NFPs) are particularly vulnerable to financial distress because of the COVID-19 pandemic. Like most for-profit entities, NFPs are experiencing a momentous disruption in their business operations and the revenue derived therefrom. That in itself is…
CARES Act expands eligibility under Small Business Reorganization Act of 2019
By Publisher
Congress just made it easier and less expensive for small businesses to reorganize under Chapter 11. Small businesses continue to struggle under the current social isolation measures in place in most states. Even with the recent financial relief package passed…