The Payroll Protection Program (“PPP”) was created by Congress through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to loan money to certain businesses for the primary purpose of providing money to fund payroll expenses, and other eligible expenses. If the PPP loan funds are used for designated purposes, all or some of
JEVIC OPINION ILLUSTRATES THE IMPORTANCE OF LANGUAGE USED IN ORDERS
The In re Jevic Holding Corp. chapter 11 case continues to make news. The case is likely best remembered for the 2017 Supreme Court decision holding that the distribution scheme in a structured dismissal of a Chapter 11 case cannot violate the absolute priority rule. The case has since been converted to Chapter 7, and
Payment to Stalking Horse Permissible When Sale Price Less than Stalking Horse Bid
By Michael L. Temin and Martha B. Chovanes
In an issue of first impression, in In re Energy Future Holdings Corp., 2021 U.S. App. LEXIS 7400 (3d Cir. Mar. 15, 2021), the Third Circuit addressed the question whether an initial bidder whose break-up fee was disallowed could receive a portion of its costs as
Secured Creditors’ State Court Rights Affected By Proof of Claim Choices
Secured creditors have many choices when it comes to how to file a proof of claim in bankruptcies. Those choices should be weighed carefully, however, because certain choices can have important unexpected consequences that outlive the bankruptcy and affect a secured creditor’s subsequent rights in state court actions.
When a debtor files a bankruptcy in
CARES ACT BANKRUPTCY PROVISIONS EXTENDED FOR ANOTHER YEAR
The “COVID-19 Bankruptcy Relief Extension Act of 2021” was signed into law by President Biden on March 27, 2021, extending the key provisions of the COVID-19 Bankruptcy Relief Act which was enacted in the CARES Act for another year.
Section 1113 of the CARES Act, which temporarily amended bankruptcy law to assist individuals and businesses
A New Standard for Chapter 11 Cramdown Plans – The Third Circuit Court of Appeal’s Refusal to Strictly Enforce Subordination Agreements in Non-Consensual Plans of Reorganization
Interplay Between Subordination Agreements and Chapter 11 Cramdown Plans
The Bankruptcy Code provides that subordination agreements are enforceable in bankruptcy to the same extent that such agreements are enforceable under non-bankruptcy law. 11 U.S.C. § 510(a). However, Section 1129(b)(1) of the Bankruptcy Code permits a Chapter 11 plan to be confirmed subject to certain requirements
Bankruptcy FAQ for Distressed Businesses
In these unsettled times, Fox Rothschild has prepared a comprehensive Bankruptcy FAQ to help businesses understand their potential bankruptcy options, the notable features of the bankruptcy process, how to prepare for a bankruptcy filing, and alternatives to bankruptcy. Items addressed in the FAQ include:
- The differences between filing for bankruptcy under Chapter 11 versus Chapter
The Statute of Limitations For A Preference Claim
Because no recent opinions have been published by the Delaware Bankruptcy Court, I wanted to touch on a subject that is vital in nearly every preference or fraudulent transfer case: The Statute of Limitations For A Preference Claim
A. Statute of Limitations
The debtor has two years from the date it filed its petition for
Seeking Relief from the Automatic Stay – Personal Injury Claimants
Very often in the course of a bankruptcy proceeding, a creditor with a pending lawsuit against the debtor will need to obtain relief from the automatic stay in order to continue to prosecute the pre-petition litigation. For example, personal injury claimants who seek to recover solely against an insurance policy of a debtor may obtain
Involuntary Bankruptcy Actions Discussed
Can a financially distressed be “forced” into bankruptcy by its creditors? In other words, is it possible for creditors to subject a distressed entity into an involuntary bankruptcy proceeding?
The answer is yes. Under Section 303 of the Bankruptcy Code, a debtor can be “forced” into an involuntary bankruptcy. 11 U.S.C.§ 303(b)(1). If a company