As an increase in bankruptcy activity looms on the horizon, the debtor-in-possession market is becoming more competitive, especially as non-bank lenders are increasingly prepared to offer capital and go to the mat against larger bank lenders.
Thanks to new guidance from the Small Business Administration, some Chapter 11 debtors may be able to obtain Paycheck Protection Program funding after being locked out for the majority of the program’s run. However, there is a catch. To qualify, debtors must have a confirmed plan and get applications in before May 31.
As COVID-19 continues to cause incredible stress on healthcare organizations, Michael Sandnes of EisnerAmper explains how CEOs must create a solid game plan and demonstrate flexibility both during and after a Chapter 11 filing.
Workout activity has reached a fever pitch in the wake of the COVID-19 pandemic. Jeffrey A. Wurst provides important tips, recommendations and considerations for secured lenders looking to execute successful workouts with a growing population of distressed borrowers in the current marketplace.
In a Q&A for ABF Journal, Gary Pittman outlined the factors that have contributed to a downturn in the oil and gas industry in 2020, how the current environment differs from previous downturns and how the industry will fare into the next year, specifically when it comes to bankruptcy, restructuring and M&A activity.
There are numerous uncertainties surrounding the Paycheck Protection Program, but one of the most puzzling is the Small Business Administration’s bankruptcy exclusion, which has been treated unevenly across the court system.
Chapter 11 filings are being used as ways to Implement 363 sales more so than in previous decades, according to Juanita Schwartzkopf, who dives into the 363 sales process and becoming a stalking horse bidder.
As a result of COVID-19, some businesses will make the difficult decision to wind down operations. As owners and lenders seek more efficient alternatives to bankruptcy, an assignment for the benefit of creditors can be a better option.
Just because a company files for bankruptcy doesn’t mean they can’t be a source of new business. Scott Greer, Matthew Warren and Jacob Jumbeck of King & Spalding explain what lenders should focus on when determining how to proceed with such debtors, using McDermott International’s recent Chapter 11 filing as an example.
Companies in bankruptcy do not have access to the Paycheck Protection Program, at least according to the letter of the law. However, the issue has become less clear as illustrated by the decisions in In re Hidalgo and In re Cosi Inc. Howard M. Berkower and Franklin Barbosa Jr. of McCarter & English take a closer look at those decisions and how their inconsistencies muddy the waters.