Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Monday, July 19, 2021 

Bankruptcy

On January 12, 2021, the Department of Justice (DOJ) announced the first civil settlement resolving allegations of fraud involving loans issued pursuant to the Paycheck Protection Program (PPP). SlideBelts Inc., an internet retail company, and Brigham Taylor, the company’s president and CEO, agreed to pay $100,000 in penalties and damages to resolve alleged violations of the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

On October 27, 2020, the National Labor Council (NLC) adopted a new set of recommendations (Advice no. 2.184 – you can find the full text here). These recommendations result from and are in line with the agreement reached by the social partners on December 17, 2019 (see our Alert of January 14, 2020).

In a recent decision, the German Federal Supreme Court addressed the applicability of the Business Judgement Rule to insolvency administrators in Germany and rejected the applicability of the rule in the specific case that was argued before it.

Federal Ministry of Justice and Consumer Protection submits draft bill on preventive restructuring

Restructurings, especially those involving multiple jurisdictions, are invariably complex matters. This CMS Expert Guide provides an overview of the various restructuring possibilities available in a large number of countries, allowing you to compare how the options are deployed in these jurisdictions.

We intend to update it periodically to reflect important changes as they happen.

If you need more information or have any questions, please do not hesitate to contact us.

Retail tenants are experiencing unprecedented difficulties stemming from the COVID-19 pandemic, including government shutdown orders for non-essential businesses and shelter-in-place rules that have virtually stopped all in-person shopping. Even as these restrictions are finally being relaxed to a limited degree, the dramatic effects of the pandemic will long be felt in the retail industry.

In these unprecedented times, all businesses will be facing issues they have never encountered before. The disruption caused by the measures imposed to combat the COVID-19 outbreak are significant and wide-reaching, impacting every business and its suppliers, customers, workforce, investors and lenders.

What specific provisions does the new law contain for tenancies?

Under the Insolvency Suspension Act COVID-19 (COVInsAG), the obligation to file for insolvency is suspended under certain conditions due to the coronavirus. The regulations apply retroactively to 01.03.2020.

The coronavirus is spreading fast. Measures to slow its spread are already hitting companies hard and will cause many companies considerable financial difficulties in the foreseeable future.

Obligation to file for insolvency