Bankruptcy Blogs

Bankruptcy Fraud Defendant Avenatti Released Pre-Trial Among COVID-19 Outbreak

04/10/20

Earlier today, United States District Judge James V.

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Precautionary and Prudency Measures for Boards Addressing COVID-19 Business Uncertainties

04/10/20

The COVID-19 pandemic has caused unprecedented economic disruptions worldwide.  Businesses that were previously flourishing are now seeing rapid declines in demand and revenue, disruptions in their supply chains, and other operational interferences.  Previously projected business plans for development and expansion may no longer be feasible.  Boards of directors facing these challenges would be well served to review their legal obligations and fiduciary duties as they help guide their companies through these challenges.

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SBA’s Amazon-assisted save, W.Va. bank failure, BofA’s selective lending: Top stories of the week

04/10/20

After opening-day fiasco, SBA upgrades lender portal with Amazon assist; West Virginia’s First State Bank closed by regulators; BofA offers emergency loans to borrowers first, freezing out depositors; and more from this week’s most-read stories.

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BofA defends giving priority to customers in rescue-loan program

04/10/20

Bank of America, which came under fire for prioritizing applications from existing small-business customers, asked a federal judge in Baltimore to reject a request in a lawsuit to temporarily bar it from employing the practice.

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Bankruptcy Hearings: Now Telephonic

04/10/20

The Alexandria Bankruptcy Court Trustee Hearings are now by Telephone. Bankruptcy Trustee hearings are now telephonic. That’s the policy of the Alexandria VA bankruptcy court, effective April 9, 2020. (Richmond and Norfolk, too.) People who file bankruptcy are required by law to “appear” in front of the bankruptcy trustee to answer question.  (For most people, […]

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The Myth of Optimal Expectation Damages

04/10/20

Roughly eighty years ago, Lon Fuller and William Perdue (the former, then a faculty member at Duke Law, and the latter, a 3L), wrote two of the most famous articles in contract law (here). One of the puzzles they posed -- about why the law favors the expectation damages measure -- resulted in an entire body of scholarship, including the theory of efficient breach.

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What does the $600B middle-market rescue plan mean for banks?

04/09/20

Bankers say they’re still trying to figure out if the Fed’s complex loan-buying vehicles will help them cater to the needs of midsize commercial customers hammered by the economic shock from the coronavirus outbreak.

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Self-employed set to join loan program already overrun with demand

04/09/20

The week-old Paycheck Protection Program will be opened up to sole proprietors and independent contractors on Friday.

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5 more moves the Fed is making to prop up the economy

04/09/20

Midsize businesses and state and local governments are among the beneficiaries of the central bank's latest $2 trillion effort to mitigate the economic damage caused by the coronavirus pandemic.

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Fed facility gives banks more room to make emergency loans

04/09/20

Many banks were hitting their limits for lending to small businesses devastated by the coronavirus outbreak. They say the Fed's decisions to help fund additional loans and relax capital requirements will resolve many of their problems.

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