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The Purpose of Special Purpose Entities
The American Bankruptcy Institute describes a Special Purpose Entity (SPE) as an entity formed concurrently with, or immediately prior to, the closing of a financing transaction…to isolate the financial assets […]
A Recent Decision Recharacterizing Debt to Equity Under Delaware Law Could Have Far-Reaching Implication
A recent decision out of the Bankruptcy Court for the Southern District of New York1 interpreting Delaware law will probably impact other decisions throughout the country in light of the […]
What Rights and Possible Exposure to Consequences Arise for Tenants When a Real Property Lease is Rejected by a Bankrupt Landlord?
Section 365(h) of the Bankruptcy Code provides special protection for non-debtors who have rights as tenants if a trustee or Chapter 11 debtor landlord rejects an unexpired lease. The lessee/tenant […]
Retention of Bankruptcy Debtor’s Property After Bankruptcy Is Not a Violation of the Automatic Stay
The Supreme Court finally settled a long-standing question as to whether a creditor is required to return property of a debtor after bankruptcy has been filed. The answer is that […]
Bankruptcy Court Rules that Eviction Moratorium for COVID Does Not Apply in Bankruptcy
In a case of first impression, the Bankruptcy Court for the Central District of California, Los Angeles Division, issued a recent opinion in In re Nikolay […]
Temporary Extension of Time for Debtor-Tenants to Decide Whether to Assume or Reject Certain Leases
On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act of 2021 (CAA). The CAA includes a temporary extension for debtor-tenants to assume or reject certain […]
The Effect of the COVID Act on the Bankruptcy Preference Laws
The “Consolidated Appropriations Act, 2021” (“COVID Act”) effective December 27, 2020 amends Section 547 of the Bankruptcy Code and protects suppliers and landlords through agreement to defer payments made after […]
Commercial Landlord Tenant Issues in Bankruptcy — Especially During the Pandemic
Introduction
Commercial tenants are defaulting at a faster rate due to the pandemic. But whether we are in a pandemic or not, commercial landlords need to know what to do […]
UPDATE: COVID-19, Business Interruption, and Insurance Coverage
A recent opinion, Urogynecology Specialist of Florida v. Sentinel Insurance Company, LTD., (M.D. Fla. Sept. 24, 2020)
6:20-cv-1174-ORL-22EJK, sheds light on approaches to COVID-19 and the […]
Contractual Obligations, Force Majeure, and COVID-19
At this point it is premature to determine how Texas courts will decide the breadth and applicability of a force majeure clause related to COVID-19 . That said, do not […]
The Necessity for Co-Tenancy and Other Related Clauses
The retail apocalypse began long before COVID-19 . With many retailers already over-leveraged and shopping patterns changing, retailers were already shuttering stores, seeking a reduction in rent and/or filing […]
Bankruptcy Usage of Key Employee Retention Plans and Key Employee Incentive Plans
Introduction
Creditors in mega-bankruptcies and people in general are up in arms over the ridiculous bonuses companies are giving their “key” employees and executives — styled as “retention bonuses.”
Pre-Bankruptcy Retention
For practical […]
Bankruptcy Courts Allow Business Debtors to Defer Rent in Response to COVID-19
In re Pier I Imports Inc., 20-30805 (Bankr. E.D. Va. May 10, 2020)
At least one bankruptcy court has crafted a remedy not otherwise addressed prior to the […]
COVID-19 and the Plight of the American Movie Theater
Americans have been going to the movies for more than a century, but for the first time in recent history, theaters are closed, and even if they open in the […]
The Case Study of Neiman Marcus and the Fate of Other Department Stores
While the notorious fashion icon, Neiman Marcus, may be the first among retailers to succumb to the economic impact of COVID-19, the virus was only the final straw in a […]
