2020 RECAP: CORPORATE RESTRUCTURING REVIEW (CRR)

INTRODUCTION

Amidst a global pandemic, there were plenty of interesting bankruptcy and restructuring events and changes that occurred in 2020.  We saw new Bankruptcy Code amendments go into effect (through the Small Business Reorganization Act of 2019), a government bailout in excess of $2.3 trillion (through the CARES Act), many life-long retailers on the brink of disappearing (and the oldest–Lord & Taylor–is disappearing), the shuttering of over 100,000 restaurants and small businesses, an ailing travel industry that claimed the largest bankruptcy of the year (Hertz), and record breaking oil & gas bankruptcies.

In case you missed a Corporate Restructuring Review (CRR) Article covering some of the issues this year, CRR would like to provide you with a summary of everything that was discussed in 2020.  Have a safe and happy New Year!

TABLE OF CONTENTS

AVOIDANCE ACTIONS

APPEALS

CLAIMS

CHAPTER 11 PLANS

FINANCING

 

 

  OIL & GAS

PROFESSIONALS

REAL ESTATE

SBRA

STANDING

SUBORDINATION/INTERCREDITOR

WARN ACT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Articles

Avoidance Actions

Fifth Circuit Restricts Double Recovery in Fraudulent Transfer Action

Why Avoidance Actions Are Difficult to Dismiss by a Rule 12(b)(6) Motion

Appeals

Delaware District Court Denies Interlocutory Appeal on Stern Claims

Claims

Court Denies the Filing of Class Action Proof of Claim in PG&E’s Bankruptcy

Does a Claim Objection Under Section 502(d) Survive the Transfer of the Claim by the Original Claimant?

Ultra Petroleum Redux: Make-Whole Provisions and Solvent-Debtor Exception Remain Intact in the Southern District of Texas

Chapter 11 Plans

Mississippi Court Joins Majority of Courts Finding that Setoff Rights Survive Plan Confirmation

Financing

New Mexico Court Holds that Bankrupt Entities are Eligible for the Paycheck Protection Program

Fifth Circuit Holds that the SBA Cannot Be Enjoined from Denying Bankrupt Entities Access to PPP Funds

Oil & Gas

Alternatives for Managing Distress in the Oil Patch

Professionals

Houston Court Questions the Utility of the J. Alix Protocol in Retaining Turnaround Advisors and their Firms

Real Estate

 

SBRA

Bankruptcy Topics in Distressed Real Estate

Small Business Reorganization Act of 2019 (SBRA) is Effective

That was Quick: California Court Holds that the SBRA can be Applied Retroactively

Standing

Creditor Denied Derivative Standing to Countersue Plaintiff in Chapter 7 Adversary Proceeding

Subordination/Intercreditor

Delaware Court Holds Enforcement of Intercreditor Agreement Does not Breach Duty of Good Faith and Fair Dealing

Seventh Circuit Holds that Reclamation Claims are Statutorily Subordinate to Prior Floating Liens on Inventory

Warn Act

Private Equity Firm and Owner Face Potential WARN Act Liability in Portfolio Companies’ Chapter 7 Bankruptcies

Partner at Dorsey & Whitney LLP