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Consolidated Appropriations Act of 2021 Amends Bankruptcy Code

As discussed in previousposts, the Consolidated Appropriations Act of 2021 (the “Act”) was signed into law on December 27, 2020, largely to address the harsh economic impact of the COVID-19 pandemic.

USA, Insolvency & Restructuring, Litigation, Mintz, Coronavirus
Consolidated Appropriations Act of 2021 Amends Bankruptcy Code

Part 2: Amendments Affecting Mortgage Lenders and Landlords

As discussed in a previous post, the Consolidated Appropriations Act of 2021 (the “Act”), which was enacted on December 27, 2020 in response to the economic distress caused by the COVID-19 pandemic, amended numerous provisions of the Bankruptcy Code. This post discusses amendments specifically affecting landlords.

USA, Insolvency & Restructuring, Litigation, Real Estate, Mintz, Coronavirus
Consolidated Appropriations Act of 2021 Amends Bankruptcy Code Part 1: Amendments Clarifying Debtors’ Rights to Other Pandemic Relief

On December 27, 2020, in response to the economic distress caused by the COVID-19 pandemic and to supplement the CARES Act enacted in March 2020, the Consolidated Appropriations Act of 2021 (the “Act”) was enacted. In addition to providing $900 billion in pandemic relief, the Act benefits both debtors and creditors by temporarily modifying the following sections of the Bankruptcy Code, which may be of particular interest to creditors:

USA, Insolvency & Restructuring, Litigation, Mintz, Coronavirus, Paycheck Protection Program, CARES Act 2020 (USA)
Weavering in the Cayman Islands

The Privy Council's recent judgment in Weavering[1]upheld the decisions of the Cayman Islands Grand Court and Court of Appeal that payments made to redeemed investors immediately prior to the fund's liquidation were preference payments under section 145(1) of the Companies Law (2018 Revision) (Law), and must be repaid.

Cayman Islands, Asset Finance, Banking, Insolvency & Restructuring, Litigation, Collas Crill, Liquidation, Investment funds
Cayman Court gives guidance on the status of redeeming investors and approach to distributions

The Grand Court of the Cayman Islands (the Court) recently ruled in favour of Primeo Fund (in official liquidation) (Primeo) in its ongoing representative proceedings with the Additional Liquidator of Herald Fund SPC (in official liquidation) (Herald).

Cayman Islands, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Mourant, Articles of association
Grand Court construes section 37(7)(a) of the Companies Law – redeemed but unpaid investors are to be treated as creditors

On 4 June 2015 the Cayman Islands Grand Court ruled in favour of Primeo Fund (Primeo), in the ongoing Representative Proceedings between Primeo and Herald Fund SPC (Herald). The Court had to construe section 37(7)(a) of the Companies Law. Although the Court's detailed reasons are still awaited, it is clear from the Court's decision that section 37(7)(a) does not apply to redeeming investors whose shares have been redeemed prior to the commencement of the liquidation.

Cayman Islands, Insolvency & Restructuring, Litigation, Mourant