Near Impossibility of Challenging a Debtor s Critical Vendor Decisions natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.
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After the Paycheck Protection Program (the PPP ) was
established in The Coronavirus Aid, Relief, and Economic Security
Act (the “CARES Act”), enacted on March 27, 2020,
debtors in bankruptcy cases applied for PPP loans. The Small
Business Administration (the SBA”) opposed PPP loans
for debtors, and courts were split as to whether the SBA could
block debtors from qualifying for and receiving PPP loans. Then
Congress passed the Consolidated Appropriations Act, 2021 (Act)
(Pub. L. No. 116-260), which was signed into law on December 27,
2020 (the “CAA”). The CAA amends the United States
PPP Loans and Small Business Debtors in Bankruptcy | Foley Hoag LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
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It has been just over a year since the first known COVID-19 cases and related shutdowns occurred in the US. In early 2020, everything from grocery shopping to global politics was deemed “unprecedented” and “unpredictable.” However, as the pandemic continues into 2021, precedents have begun to be established, even as unpredictability remains. In the field of bankruptcy, as elsewhere, we are seeing new trends and establishing new ways of practicing, some of which look likely to survive the pandemic, even if many businesses do not.
The Virtual Pivot
Government restrictions and public health concerns abruptly forced restructuring practitioners to a virtual platform in March 2020. Court offices were closed, physical document deliveries were prohibited, physical client meetings became a public health risk, and courts mandated that hearings be held telephonically or by video conference. While some of these restrictions
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Somewhere in our rough memories of high school science, we should recall the general principle that a gas will always expand to fill a given void. Although the Bankruptcy Code diverges markedly from scientific principles, newly enacted provisions in Subchapter V of Chapter 11 of the Bankruptcy Code suggest some similarity. In
In re Dani Transport Service, Inc., the United States Bankruptcy Court for the Central District of California found that Sections 1183 and 1185 of the Bankruptcy Code can be read together to remove a Subchapter V debtor’s misbehaving management and expand the Subchapter V trustee’s management duties to fill the void. Aside from an example of these provisions in action, the case offers insight into the circumstances under which parties and the bankruptcy court may find management substitution preferable to chapter 7.