PROMESA becomes law: all businesses in Puerto Rico will be affected - top points about this sweeping rescue package

Just one day before the July 1 deadline for an expected major default by the Government of Puerto Rico, President Barack Obama signed into law the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), a sweeping new law designed to bring stability to the Puerto Rican economy and establish oversight of the Island’s budget and fiscal policies for at least the next five years.

Filed under:
Puerto Rico, Insolvency & Restructuring, DLA Piper, Board of directors, Budget, Debt, Economy, Internal Revenue Code (USA), US Congress, US House of Representatives
Location:
Puerto Rico
Firm:
DLA Piper
Bankruptcy court approves $4.1 billion DIP facility for Chrysler

Yesterday, in a bankruptcy court hearing held for Chrysler LLC (and 24 of its wholly owned subsidiaries), which filed for Chapter 11 bankruptcy protection last Thursday, U.S.

Filed under:
USA, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Bankruptcy, Debtor, Collateral (finance), Budget, Investment funds, Subsidiary, Troubled Asset Relief Program, Secured loan, HM Treasury (UK), Chrysler, United States bankruptcy court
Authors:
Anjali Desai
Location:
USA
Firm:
Alston & Bird LLP
Directors' liability in the event of bankruptcy

A. THE PROBLEM

Many charities and associations have cash flow challenges, particularly in the current economic situation. They usually budget to break even financially. If some funding does not materialize as expected, they may be forced to close down. Their directors may be at financial risk as a result.

Filed under:
Canada, Employment & Labor, Insolvency & Restructuring, Borden Ladner Gervais LLP, Wage, Bankruptcy, Legal personality, Interest, Employment contract, Budget, Trade union, Debt, Liability (financial accounting), Common law, Joint and several liability, Severance package, Corporations Act 2001 (Australia)
Location:
Canada
Firm:
Borden Ladner Gervais LLP