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.
The disruptions caused by the coronavirus (COVID-19) have been far-reaching and will continue to affect all industries in the months to come. These effects are only exacerbating what were already weekening corporate foundations. Michael Fielding examines what lenders should anticipate and how they can deal with distressed debt situations during and after the pandemic.
After serving the U.S. Bankruptcy Court for 14 years, The Honorable Kevin Gross is retiring. In a Q&A with ABF Journal, he looks back on the events that led him to bankruptcy and the most important cases that came before him.
Conflicting decisions by the 2nd, 3rd and 5th Circuit courts have created confusion over the status of make-whole claims in bankruptcy. Stephen Selbst analyzes the controversial cases and calls for a resolution either by a Supreme Court ruling or an amendment to the Bankruptcy Code.
While Chapter 11 filings in 2019 were about half of the peak reached in 2005, there were significant filings by iconic companies. The American Bankruptcy Institute monitors the bankruptcy landscape and lobbies to pass key legislation, like the Small Business Reorganization Act of 2019. Amy Quackenboss and Ed Flynn provide an overview of significant bankruptcy actions in 2019 and look ahead to 2020.
As a new decade dawns, a changing of the guard brings new leadership to the American Bankruptcy Institute. Longtime deputy director Amy Quackenboss has taken the reins upon the retirement of Sam Gerdano.
The 2012 LIBOR scandal, in which a group of bankers manipulated the global interbank rate, rocked the financial world. LIBOR, long used to establish interest rates on commercial and consumer loans, is scheduled to sunset in 2021. The question “what will replace LIBOR?” has persisted. Oscar Stephens provides an overview of the current situation and offers a preview of SOFR, the top contender for LIBOR’s replacement.
Aegean Marine Petroleum Network received interim court approval of its $532 million debtor-in-possession facility provided by Mercuria Energy Group. The loan allows Aegean Marine to continue operating while restructuring.