- In light of the economic downturn caused by the COVID-19 pandemic, bankruptcy and restructuring considerations are a reality for many organizations.
- Debtors reorganizing under Chapter 11 of the U.S. Bankruptcy Code should be aware that environmental obligations may be exempt from the automatic stay and that some environmental obligations will not be dischargeable in bankruptcy.
- This Holland & Knight alert provides an overview of common issues arising at the intersection of bankruptcy and environmental law.
With economic downturn comes bankruptcy.
USA, Environment & Climate Change, Insolvency & Restructuring, Litigation, Holland & Knight LLP, Due diligence, Coronavirus
- The U.S.
USA, Insolvency & Restructuring, Litigation, Holland & Knight LLP, Due diligence, Coronavirus, Paycheck Protection Program, Families First Coronavirus Response Act 2020 (USA), CARES Act 2020 (USA)
The Financial Accounting Standards Board (FASB) issued proposed amendments on June 26, 2013, to provide guidance about management's responsibilities in evaluating a company's going concern uncertainties in addition to the timing and content of related footnote disclosures. Even before a company’s liquidation is imminent, there may be uncertainties about a company’s ability to continue as a going concern and, therefore, about its going concern presumption (going concern uncertainties). Currently, there is no guidance in the U.S.