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Distressed Company M&A in the Time of COVID-19: Benefits and Risks of Section 363 Sales

The COVID-19 pandemic and the drastic measures taken in an effort to mitigate its adverse impact have sent shock waves throughout the US and global financial systems. COVID-19 and measures including travel bans, shelter-in-place orders and widespread business closures have caused precipitous changes in customer spending and demand, supply chain disruptions, sharp declines in revenue and other operational challenges across a wide range of economic sectors. Businesses worldwide now confront unprecedented and mounting challenges and distress.

USA, Corporate Finance/M&A, Insolvency & Restructuring, Seyfarth Shaw LLP, Private equity, Landlord, Due diligence, Coronavirus, Title 11 of the US Code
Bullock cannot save ERISA fiduciary, a sole corporate shareholder whose company failed to make multiemployer fund contributions, from being unable to discharge his liability through personal bankruptcy

Fiduciaries who breach their duties may pay the consequences far longer than they may think, for they may not even be able to escape liability through personal bankruptcy.  In Raso v. Fahey (In re Fahey), No. 11-1118 (June 11, 2013), the U.S Bankruptcy Court for the District of Massachusetts became the first court to apply the new defalcation guidelines laid down by the Supreme Court in Bullock v. BankChampaign, NA, 133 S. Ct.

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Seyfarth Shaw LLP, Shareholder, Employee Retirement Income Security Act 1974 (USA), Fiduciary, Bankruptcy Appellate Panel