A new trend is brewing in bankruptcy courts: debtors are increasingly able to use the courts’ general equitable powers for assistance in weathering the current economic storm. These pandemic-related equitable arguments may significantly impact the marketplace—positively or negatively depending on your position—specifically as it relates to lease performance and also in general.

In light of the ongoing economic impacts of the COVID-19 pandemic, and although Chapter 11 of the U.S. Bankruptcy Code pertains to many industries, there are certain real estate related provisions of which owners and tenants should remain particularly aware in planning strategies to cope with the fallout from the current health crisis.

To raise awareness in that regard, the following is a general summary of some of the more critical provisions of the Code.

Single Asset Real Estate Entity

The sudden fall of the oil market is already wreaking havoc on companies, and recent bankruptcy filings may be just the beginning.

Enacted March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) places short-term obligations and restrictions on lenders and servicers of federally backed loans. As part of these limitations due to Coronavirus Disease 2019 (COVID-19), lenders and servicers are temporarily subject to moratoriums on foreclosures, mandatory forbearance obligations, and revised credit reporting obligations.

In an increasingly desperate business climate, thousands of businesses are expected to apply for emergency loans created by the Coronavirus Aid Relief and Economic Security Act (CARES Act) – but unionized employers may want to think twice before walking this path. Certain commitments necessary to secure these loans– including a commitment not to abrogate existing collective bargaining agreements – could impact your labor relations strategy well beyond the course of the COVID–19 emergency.

Debtors in bankruptcy, including hospitals and skilled nursing facilities, left out under the CARES Act PPP

Operating a consumer finance company in normal times is no simple process—in the on-going pandemic, it is even tougher.  

This may be a good time to step back a minute to examine the most common mistakes that we see made by finance companies.  I offer the following for your consideration:  

In response to the coronavirus (COVID-19) pandemic, many employers in various industries have been reducing hours and pay, or in many cases, closing their sites indefinitely. Employers can reference the article below for strategic ways to limit their liability when terminating or laying off employees during the coronavirus pandemic and contact Ice Miller LLP for additional information and assistance.

COVID-19 is taking an alarming and unfortunate toll on our country’s population. Each day, we collectively face daunting health risks, and the economic cost to individuals and businesses alike has already been, and will continue to be, staggering. Accordingly, more than at any point in the past decade, both debtors and creditors should consider the potential benefits of the bankruptcy process. This post discusses four basic bankruptcy concepts that always merit consideration, especially in these trying times.

In 2017, in Bristol-Myers Squibb Co. v. Superior Court,1 the Supreme Court of the United States held that, in federal cases involving multiple plaintiffs, each plaintiff must establish that the court has personal jurisdiction over each of its claims.2 This severely limited the forums where plaintiffs could bring multiple-plaintiff cases against defendants.