As COVID-19 related economic disruptions place unprecedented stress on cash flows, the risk of insolvency is a new and growing concern for many businesses. Against the backdrop of a decades-long growth in corporate debt, boards of directors are making decisions that have the potential for pitting the interests of creditors against the interests of equity shareholders.

In a non-precedential ruling, the Court of Appeals for the Third Circuit upheld a district court decision to grant summary judgment in favor of a defendant that was sued for violating the Fair Debt Collection Practices Act.