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On Friday 24 April, RPC hosted a 30 minute webinar on the interaction of furloughing and insolvency law.
During this session, our Insolvency Partner Paul Bagon discussed the recent High Court judgement involving Italian restaurant chain Carluccio's, which entered administration at the end of March.
Can businesses obtain a Paycheck Protection Program (PPP) loan to fund their chapter 11 bankruptcy cases? This question has been looming over companies facing bankruptcy and in immediate need of financing. On April 15, the Small Business Administration (SBA) issued its answer.
Selección de las principales resoluciones en materia de reestructuraciones e insolvencias.
La competencia para conocer de un ERTE por fuerza mayor derivada del COVID-19 corresponde a la jurisdicción laboral y no al juez del concurso
Auto del Juzgado de lo Mercantil de León, de 1 de abril de 2020
While it did not focus on bankruptcy relief, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act contained provisions relating to small bankruptcy debtors.
Disagreeing with the much-critiqued SDNY opinion in Enron, the SDNY bankruptcy court disallowed claims brought by secondary transferees because the original claimants allegedly received millions of dollars in fraudulent transfers and preferences from the Debtors that have not been repaid. Deepening the district spilt on the nature of Section 502(d) of the Bankruptcy Code, the Court held that the defense barring fraudulent transfer-tainted claims focuses on claims—not claimants—and cannot be “washed clean” by a subsequent transfer in the secondary market.
The policies implemented to address the COVID-19 will have far reaching economic consequences. While federal and state governments are doing what they can to ease the short term impact, the fact remains that businesses of all sizes are addressing crises caused by a lack of consumption and a disruption of most all of the other factors that keep an economy afloat.
Syedur Rahman considers the significance of the April 2020 judgment in Byers & Ors V Samba
The latest hearing in the case of the US $300million claim of Byers & Ors v Samba Financial Bank took place over three days at the end of February 2020. The Court handed down its judgment on 8th April 2020.
This judgment is a significant one on several points:
When the Coronavirus Act 2020 (the "Act") received royal assent on 25 March 2020, commercial tenants across the country were afforded some relief.
A voluntary administrator is often appointed by the company. The directors have a role in selecting the administrator; often the referral will come through one of the company’s advisers, such as the accountant or lawyer.
In the context of the COVID-19 pandemic, many measures have already been taken to support the economy as much as possible during these turbulent times. It is already clear that the impact will be enormous and that the cash buffer built up by some companies will not be enough to survive this crisis. Measures such as deferrals on paying tax and social debts, temporary unemployment due to economic reasons and the Belgian State’s guarantee scheme for bank loans will not suffice for some.