Blogs

Business and Financial Services

8 Common Business Bankruptcy Questions

Financial and economic challenges due to the pandemic have resulted in a growing number of bankruptcy filings for both individuals and businesses. A number of creditors’ rights challenges arise when a business or individual whom you transact with files for bankruptcy. Here are examples of several scenarios currently impacting landlords, tenants, and business owners and…

August 18, 2020

Business and Financial Services

Paycheck Protection Loans under the CARES Act: What Do Lenders Need to Know?

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) became law in the United States. Among other things, the CARES Act provides relief to certain businesses in the form of “paycheck protection loans” through what the Act calls the Paycheck Protection Program (the “Program”). These loans are to be…

March 30, 2020

Bankruptcy, Restructuring and Creditors’ Rights

To Stay Clear of Stay Violations, Action May be Required

The automatic stay, imposed (automatically, of course) by the filing of a voluntary bankruptcy petition, is the most fundamental of protections offered by the Bankruptcy Code. The stay, governed by 11 U.S.C. § 362 , is designed to provide debtors with a “breathing spell” from creditors and the opportunity to liquidate or reorganize under the supervision of the bankruptcy court. It bars not only the commencement of any action against the bankruptcy debtor to collect debts, but also the…

July 2, 2015

Employment Law

No WARNing of Bankruptcy?

Bankruptcy does not automatically eliminate an employer’s obligations under the federal WARN Act, and financially distressed companies can still face significant liability for failing to provide advance notice of mass layoffs or plant closings. In this Bean, Kinney & Korman article published in the BKK Employment Law Newsletter, Andrea Campbell Davison explains how bankruptcy can complicate WARN Act compliance, including disputes over whether a debtor still qualifies as an “employer” and…

April 2, 2014

Bankruptcy, Restructuring and Creditors’ Rights

Bankruptcy: Preference Defendants Don’t Feel “Preferred”

Bankruptcy preference actions can force businesses to return payments they received legitimately before a customer or counterparty filed for bankruptcy. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, Andrea Campbell Davison explains how Section 547 of the Bankruptcy Code allows a trustee to recover certain transfers made in the 90 days before a bankruptcy filing if those payments gave one creditor more than it would have received in a Chapter 7 liquidation.…

March 4, 2014

Bankruptcy, Restructuring and Creditors’ Rights

Bankruptcy and Government Contractors

Government contractors that enter bankruptcy face a different set of risks than ordinary commercial debtors because the value of the business often depends on preserving existing federal contracts and eligibility for future awards. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, Andrea Campbell Davison explains that Section 525(a) of the Bankruptcy Code can limit government discrimination based solely on bankruptcy status, but those protections are narrow in…

November 1, 2013