As the saying goes, what goes up, must come down. After years of robust growth, the U.S. economy appears to be hitting a rough patch. In the coming months, it is likely that some businesses will not survive the challenges that lie ahead, and will be forced to file bankruptcy.
As bankruptcy attorneys, we find that one of the most difficult issues to explain to a client is receipt of a demand letter from a […]
With the passage of the Small Business Reorganization Act (the “SBRA”) in 2019,1 Congress made significant changes to the Bankruptcy Code2 that affect small businesses.3 These changes include removing the appointment of a creditors’ committee as a matter of course for small businesses and the creation of subchapter V,4 a new, additional, and streamlined bankruptcy option for eligible small businesses.5 Two recent cases, In re Bonert6 and In re Lear Capital, Inc.,7 offer an opportunity to examine these changes and may offer insight […]
A recent U.S. District Court for the District of Delaware opinion, In re TPC Grp. Inc., provided another instance of an uptiering transaction withstanding legal scrutiny and provides further support for the view that courts generally avoid “reading-in” language not expressly stated in debt documents, especially when such documents were negotiated at arms-length by sophisticated parties. As a result of the court’s guidance, lenders may be more willing to participate in uptiering transactions or other […]