On May 20, 2020, the UK Government published its much anticipated draft legislation (the Corporate Governance and Insolvency Bill) which aims to provide greater opportunities for company survival and better returns for creditors during and after the COVID-19 emergency. The Government intends to ask Parliament to expedite progress of the Bill.
As discussed in an earlier Legal Update,1 substantial uncertainty exists over whether companies in bankruptcy are eligible for loans under the Paycheck Protection Program, or PPP, which was established by the CARES Act to support small businesses by offering SBA-guaranteed loans on advantageous terms. Several recent bankruptcy court decisions underscore this uncertainty.
I. Introduction
Due to the current corona crisis and the therewith associated tense economic situation, many managing directors (Geschäftsführer) are faced with the question of a possible, punitive obligation to file for insolvency as well as other duties that must be observed in the context of a crisis.
The following provides an overview of the obligation to file for insolvency, payment prohibitions in a crisis as well as the facilitations introduced under the German COVID-19 legislation.
Good morning.
Please find our summaries of last week’s civil decision of the Court of Appeal for Ontario.
A court1 has approached the interplay between the Insolvency Act 1986 and the Government's furlough scheme so as to encourage and support the rescue culture and facilitate access to the scheme by administrators. It ruled that:
Supply chain finance products have a well-deserved reputation of being fairly low risk propositions. The majority of facilities are uncommitted, exposures are typically short-term and many counterparties are highly rated and well capitalized.
As courts across the country deal with scaled back operations due to the COVID-19 pandemic, bankruptcy courts in New Jersey and Delaware have issued novel orders to address the impact of the virus on certain debtors. Last month, debtors in the chapter 11 bankruptcy cases of Modell’s Sporting Goods, Inc. and CraftWorks Parent, LLC each sought and obtained court orders suspending certain case activity which, for all intents and purposes “mothballed” the cases for a certain period of time.
Original Newsletter(s) this article was published in: Commercial Litigation Update: April 2020
The COVID-19 pandemic is, first and foremost, a human and health crisis. Social and physical distancing has been the almost universal response to this pandemic. The effect of social distancing on the economy, however, is significant.
Original Newsletter(s) this article was published in: Commercial Litigation Update: April 2020
The COVID-19 pandemic is, first and foremost, a human and health crisis. Social and physical distancing has been the almost universal response to this pandemic. The effect of social distancing on the economy, however, is significant.
O Conselho Nacional de Justiça (“CNJ”) aprovou, na 307ª Sessão Ordinária, realizada de forma virtual no dia 31 de março de 2020, orientações para os juízos competentes para processamento de recuperações judiciais, diante do estado de calamidade pública e severo impacto econômico gerados pelo COVID-19.
As orientações foram aprovadas pelo CNJ por meio do Ato Normativo nº 0002561-26.2020.2.00.0000, sob relatoria do Conselheiro Relator Henrique Ávila.