In January 2020, we analyzed a split among the Circuit Courts regarding whether a non-debtor holding a debtor’s property on the petition date has an affirmative obligation under section 362(a)(3) of the Bankruptcy Code to return that property to the debtor immediately following the filing of the bankruptcy petition.

When a company is facing financial difficulties, the Directors of that company should be aware to the procedures that must be followed in relation to redundancies in order to avoid prosecution.