The acquirer had pursued a de novo strategy in its home state but was unable to raise enough capital.
The Coronavirus Aid, Relief, and Economic Security Act being commonly referred to as the ‘‘CARES Act’’ will provide emergency assistance and health care response for individuals, families and businesses affected by the 2020 coronavirus pandemic. The CARES Act itself is 883 pages long and contains several different Divisions, Titles and Sections including Title I, Keeping American Workers Employed and Paid Act, and Section 1102 known as the Paycheck Provision Program. Under this new Act, small businesses are eligible for unsecured, no-fee loans to cover business interruptions from COVID-19. During the covered period defined as February 15, 2020 through June 15, 2020, an eligible recipient may use the proceeds of the covered loan for various business-related expenses, including (i) payroll costs; (ii) costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave, and insurance premiums; (iii) employee salaries, commissions, or similar compensations; (iv) payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation); (v) rent (including rent under a lease agreement); (vi) utilities; and (vii) interest on any other debt obligations that were incurred before the covered period.
Read More from: Bernstein-Burkley, P.C.
UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION AT COLUMBUS
Jose J. Cabrera,
Case No. 18-56909
Chapter 7 Judge Hoffman
Nashely J. Wilson,
Adv. Pro. No. 18-2155
Capitol South Community Urban Redevelopment Corporation,
Nashely J. Wilson,
Adv. Pro. No. 19-2013
OPINION ON COMPLAINTS TO DETERMINE DISCHARGEABILITY OF DEBTS
This document has been electronically entered in the records of the United
States Bankruptcy Court for the Southern District of Ohio.
IT IS SO ORDERED.
Dated: March 27, 2020
Case 2:19-ap-02013 Doc 28 Filed 03/27/ 03/27/20 11:19:08 Desc Main
Document f 28
Case 2:19-ap-02013 Doc 28 Filed 03/27/20 Entered 03/27/20 11:19:08 Desc Main Document
Page 2 of 28
Read More from: Chris Wesner Law Office LLC
Banks and fintechs are not taking undue risks in lending to new customers; Jefferies CFO Peg Broadbent succumbs to the disease at age 56.
Homeowners reeling from coronavirus-induced economic shock are already enduring extremely long wait times while trying to get relief. Legislation passed last week could worsen the logjams.
Over the weekend, the Business Secretary announced that UK Insolvency Laws will be changed.
The changes will give businesses “extra time to weather the storm” and give comfort to directors who, challenged with trading through a difficult cash flow period, will not face claims for wrongful trading.
This is a hyper-technical bankruptcy question that's been bothering me for a while: what happens with post-petition attorneys' fees for undersecured/unsecured creditors after the Supreme Court's 2007 decision in Travellers v. PG&E? Specifically, assuming that the post-petition attorneys' fees fees are allowed as an unsecured claim, are they credited against a collateral cushion before or after post-petition interest?
Some quick background. Secured creditors are entitled to post-petition interest in bankruptcy to the extent of their collateral cushion. So if a secured creditor is owed 80 and has collateral of 100, it can accrue up to 20 in post-petition interest. Usually this is at the contract rate, but the entitlement is statutory and applies even if there is no contractual right to interest.
Read More from: Credit Slips
California bans evictions for non payment triggered by the COVID-19 shut-down under Gov. Newsom’s executive order of March 27,2020.
The protection comes with a big IF: A tenant must act to trigger these protections, which run through May 31,2020.
The order covers tenants who have been
The loss of income has to be traceable to the virus, the state of emergency, or related government response.
You need to do two things to invoke eviction protection.
Read More from: The Soap Box
There are so few travelers left at Kennedy International Airport, one of the world’s busiest airfields, that taxis wait six hours or more for a single passenger.
Taxi companies can no longer find enough drivers for their fleets because there is so little business.
And some cabdrivers are so fearful of being exposed to the coronavirus they are staying home with no way to pay mounting bills.
All this at a time when many of New York City’s taxi owners are already in financial ruin after taking out reckless loans to buy medallions — city-issued permits required to own a yellow cab — at artificially inflated prices, with the reassurance of the city’s taxi commission of their high value.
Their industry has increasingly lost riders to the boom in Uber, Lyft and ride-app services, and been shaken by a spate of suicides by desperate taxi owners and for-hire drivers.
Now taxi owners and drivers who were barely holding on said their livelihood had evaporated as the city all but shut down to try to slow the spread of the coronavirus.
“When you have to wait six or seven hours to get one passenger, it’s really bad,” said Mario Darius, 66, a taxi owner who was camped out at Kennedy Airport after picking up just three fares in three days.
Though citywide taxi ridership numbers for March are not yet available, some taxi companies, cab owners and drivers said their rides had plunged by two-thirds or more.
Read More from: Shenwick & Associates
By voice vote on March 27, the House of Representatives passed the Coronavirus Aid, Relief and Economic Security Act (the “Act”), a version of which the Senate passed on a 96-0 vote two days earlier. President Trump promptly signed the Act into law. The Act includes significant amendments to the Senate bill resulting from legislative negotiations that took place since we last analyzed it here. The final version of the Act increases funding for loans to small and large businesses, increases oversight on the Department of the Treasury’s loans and grants to businesses, and adds funding for struggling state, tribal and local governments, individuals and healthcare providers. We summarize key changes here.
Read More from: Orrick, Herrington & Sutcliffe LLP
The rules for student loan borrowers hoping for Public Service Loan Forgiveness are changing rapidly, and information even on Education Department and CFPB web sites is confusing and rapidly outdated. The CARES Act, section 3513, signed into law on March 27, requires the Secretary of Education to “suspend all payments due” for federally-held student loans until September 30. The same section provides that interest shall not accrue on any loan for which payments are suspended. The law supersedes the prior Education Department administrative action suspending interest for 60 days. Of special relevance to PSLF, the third subsection provides that “The Secretary shall deem each month for which a loan payment was suspended under this section as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program.”
The most important advice for borrowers is still to 1) be sure you are in a federal direct loan, using a direct consolidation loan if necessary to get out of FFEL, 2) get on an income-dependent repayment plan and 3) apply to have your IDR monthly payment recalculated now, not next year, if you have any job loss or drop in income.
Read More from: Credit Slips
In The New Boardroom Imperative: From Agility To Resilience Julian Birkinshaw, (Professor of Strategy and Entrepreneurship, London Business School) discusses the critical issue of strategic resilience – the ability “to make smart choices about the scope of business activities in the face of uncertainty.”
Recent posts here have outlined key strategies for tackling business challenges and provided a sampling of resources helpful in developing an effective plan. See Five Keys to Dealing Effectively with Disruption and Resiliency Resources.
This post “zooms” out (the word choice clearly reflecting too many videoconferences) to focus on three business outcomes in a time of disruption. What are those three outcomes? Fundamentally: reorganization, sale or liquidation. There are many paths to reach any of these outcomes – including in-court and out of court avenues. Each outcome, of course, has significant consequences.
Read More from: Forward Thinking Advocate
Our Global Supply Chain and R&I teams have produced a recent article that focuses on the impact of the COVID-19 virus on automotive supply chains.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted, an economic relief package in response to the COVID-19 pandemic. The CARES Act provides economic support at the federal level to the business sector, employees, individuals and families, and specific industries that have been impacted, including air transportation, healthcare, and education.
Summarized below are key aspects of the Paycheck Protection Program, a $349 billion SBA-administered loan and loan forgiveness program described in Division A, Title I – Keeping American Workers Paid and Employed Act of the CARES Act.
Read More from: Bankruptcy and Restructuring Blog
Read More from: A Texas Bankruptcy Lawyer's Blog
Lawmakers and regulators opted to delay compliance for banks that have implemented the credit loss standard, sparing them near-term capital hits.
What banks need to know about the coronavirus stimulus package; tech vendor Finastra hit with ransomware attack; bank CIOs confront challenge of so many employees working at home; and more from this week's most-read stories.
Many argue the economic turmoil from the pandemic makes the Comprehensive Capital Analysis and Review irrelevant this year, while others say testing banks’ capital strength is crucial now more than ever.