The European Commission decided on 5 July 2021 to open an in-depth investigation into the restructuring plan of the airline TAROM notified by Romania in May 2021, as well as into the EUR 190 million aid to support it under the Guidelines on State aid for rescuing and restructuring undertakings in difficulty.

The Romanian airline TAROM has been in financial difficulties for many years. In February 2020, the Commission approved rescue aid of EUR 36.7 million in favour of the airline in the context of a Romanian notification.

In Dr. Thomas Markusic et al. v. Michael Blum et al. memorandum opinion 200818, the Delaware Chancery Court (the “Court”) declined to extend the Gentile doctrine. In so doing, the Court held that the counterclaims attempting to rely on it had to be dismissed.

WHAT YOU NEED TO KNOW IN A MINUTE OR LESS

Companies should anticipate the possibility that they will find themselves in a situation where a vendor, customer, or other contract counterparty commences a bankruptcy case pursuant to Title 11 of the U.S. Code (the Bankruptcy Code). The ongoing COVID-19 pandemic has caused economic stress to a wide variety of business sectors, and it has underscored the risk that a contract counterparty may file for bankruptcy.

Bankruptcy effect on vendor and supply contracts

WHAT YOU NEED TO KNOW IN A MINUTE OR LESS

Companies should anticipate the possibility that they will find themselves in a situation where a vendor, customer, or other contract counterparty commences a bankruptcy case pursuant to Title 11 of the U.S. Code (the Bankruptcy Code). The ongoing COVID-19 pandemic has caused economic stress to a wide variety of business sectors, and it has underscored the risk that a contract counterparty may file for bankruptcy.

Bankruptcy effect on vendor and supply contracts

Swissport Belgium, one of the two licensed ground handling service providers at Brussels Airport, was declared bankrupt in June 2020, three months after the airport's operations were interrupted due to measures adopted by the Belgian government to limit the spread of COVID-19. Nearly 1,500 workers lost their jobs.

In order to support these workers, Belgium applied for assistance from the European Globalisation Adjustment Fund (EGF) to help these redundant workers back into employment (especially those with no professional qualifications or with a low level of education).

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

The UK government has extended its suspension of various rules and procedures affecting distressed businesses as a result of the coronavirus (COVID-19) pandemic. However, with the UK lockdown easing on a rolling basis up to 21 June 2021, these may be the last of the blanket extensions across all of these areas. Expect the gradual reintroduction of some of the rules and procedures from 1 July onwards.

The Extensions to the End of June 2021

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 COVID-19 bankruptcy relief provisions enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), which were further amended and/or extended as part of the Consolidated Appropriations Act (the CAA). Certain of the amendments included in the CAA and the Extension Act are highlighted below:

Debtors and Paycheck Protection Program Loans

As requested by practitioners for several months, the legislator has finally amended the Belgian Code of Economic Law to complete the range of tools available to companies in distress to allow them achieve their financial recovery. The publication of these amendments in the Belgian Official Gazette took place on Friday 26 March 2021, making them effective immediately.

The main amendments are as follows: