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The CARES Act was recently amended to include $3.5 billion of extended debt relief payments for SBA borrowers. The program will initially provide for 3 payments of principal and interest to a maximum of $9,000 per month under various criteria and then an additional 5 payments for borrowers considered “underserved” as defined in the amended legislation.
Credit Quality and Performance
At December 31, 2020, NPAs declined by $1.9 million, or (20%), to $7.9 million, compared to $9.8 million at December 31, 2019, and decreased by $2.4 million, or (23%) from $10.3 million at September 30, 2020. Classified assets increased to $34.0 million, or 0.73% of total assets, at December 31, 2020, compared to $32.6 million, or 0.79% of total assets, at December 31, 2019, and $33.0 million, or 0.72% of total assets, at September 30, 2020.
Friday, January 29, 2021
As discussed in a previous post, the Consolidated Appropriations Act of 2021 (the “Act”), which was enacted on December 27, 2020 in response to the economic distress caused by the COVID-19 pandemic, amended numerous provisions of the Bankruptcy Code. This post discusses amendments specifically affecting landlords.
First, the Act assists debtors by amending Section 365(d)(3) of the Bankruptcy Code to allow, at the bankruptcy court’s discretion, small business debtors experiencing pandemic-related financial hardship an extra 60 days, in addition to the initial 60-day grace period, to make payments under unexpired leases of non-residential real property following the bankruptcy filing date. Allowing small business debtors to defer rent for four months will improve their short-term cash liquidity at the start of their bankruptcy case, although such deferred payments would be treated as administrative expenses entitled to the highest priori
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On December 3, 2020, the United States Bankruptcy Court for the District of Delaware entered an opinion in
In re Extraction Oil & Gas, Inc., Case No. 20-11548 (CSS), holding that two entities (the “State Court Plaintiffs”) violated the automatic stay of 11 U.S.C. § 362(a) when those entities commenced and prosecuted litigation against non-debtor entities in Colorado state court and entered into a settlement agreement with the non-debtor entities. The Court’s opinion provides useful guidance regarding the scope of the automatic stay of 11 U.S.C. § 362(a).
Prior to the commencement of the bankruptcy case, the Debtors who were in the business of extracting hydrocarbons from land in Colorado entered into a Transportation Services Agreement (“TSA”) with the State Court Plaintiffs. The Debtors’ TSA with the State Court Plaintiffs required, among other things, that the Debtors ship a minimum volume of oil usi
Los Angeles A Calabasas-based real estate developer has been indicted in a bankruptcy fraud case that also alleges he laundered funds through shell companies in order to hide them from his creditors.
Mark Handel was charged in a nine-count indictment unsealed today with one count of making a false statement in a bankruptcy case, two counts of concealing assets belonging to a bankruptcy estate, one count of falsely testifying under oath at a bankruptcy proceeding, and five counts of money laundering.
Handel s arraignment is scheduled for February 16 in United States District Court in downtown Los Angeles.
According to the indictment, Handel worked as a developer of commercial and residential real estate for more than 30 years. In April 2015, Handel filed a chapter 11 petition in United States Bankruptcy Court in Woodland Hills and subsequently made a series of false statements to avoid debts exceeding $10 million that he owed to creditors, including California Bank and Trust (C