On March 27, 2021, President Biden signed into law the COVID-19 Bankruptcy Relief Extension Act (the Extension Act). The Extension Act temporarily extends certain bankruptcy relief provisions that were enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), as further amended and/or extended as part of the Consolidated Appropriations Act (the CAA) which was signed into law on December 27, 2020. This alert highlights the impact of these changes on banks and other lenders.
Subchapter V Debt Limits
On December 27, 2020, the Consolidated Appropriations Act, 2021 became law. In addition to funding the government and providing coronavirus relief, the Act contains several intriguing amendments to the Bankruptcy Code. The changes discussed below are intended to make restructuring under subchapter V of chapter 11 more attractive for small businesses.
Rent Abatement for Small Business Tenants
The coronavirus pandemic has been particularly cruel to brick-and-mortar retail establishments. As rising infection rates force municipalities to roll back reopening plans, retail and hospitality businesses that rely on in-person sales to generate revenue are finding it impossible to manage fixed costs, especially rent. Many have sought shelter in chapter 11, only to discover that even the federal bankruptcy laws cannot always solve their rent problems.
What Does the Chapter 11 Tenant Owe its Landlord During the Bankruptcy Case?
Karen McMaster, Ben Andrews and James Cameron, Milbank LLP
This is an extract from the 2020 edition of GRR's the Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
In summary
Cristóbal Eyzaguirre B, Rodrigo Ochagavía R-T and Santiago Bravo S, Claro & Cia
This is an extract from the 2021 edition of GRR's The Americas Restructuring Review. The whole publication is available here.
In summary
DJ Miller, Thornton Grout Finnigan
This is an extract from the 2021 edition of GRR's The Americas Restructuring Review. The whole publication is available here.
In summary
This chapter highlights the flexible nature of Canada’s restructuring regime, where creative solutions to novel and complex issues are welcomed by the judiciary.
Discussion points
Luiz Fernando Valente de Paiva, Giuliano Colombo, Andre Marques, Carolina Kiyomi Iwamoto and Ana Beatriz Araujo Ribeiro do Valle, Pinheiro Neto Advogados
This is an extract from the 2021 edition of GRR's The Americas Restructuring Review. The whole publication is available here.
In summary
Adrián Thery, Borja García-Alamán, Juan Verdugo and Juan María Jiménez, Garrigues
This is an extract from the 2020 edition of GRR's the Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
In summary
Ken Baird, Mark Liscio, Samantha Braunstein, Katharina Crinson and Kevin Connolly, Freshfields Bruckhaus Deringer
This is an extract from the 2021 edition of GRR's The Americas Restructuring Review. The whole publication is available here.
In summary
Job van Hooff and Sophie Beerepoot, Stibbe
This is an extract from the 2020 edition of GRR's the Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
In summary