2020 RECAP: CORPORATE RESTRUCTURING REVIEW (CRR)
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
Fifth Circuit Restricts Double Recovery in Fraudulent Transfer Action
Why Avoidance Actions Are Difficult to Dismiss by a Rule 12(b)(6) Motion
Delaware District Court Denies Interlocutory Appeal on Stern 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
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
Houston Court Questions the Utility of the J. Alix Protocol in Retaining Turnaround Advisors and their Firms
Small Business Reorganization Act of 2019 (SBRA) is Effective
That was Quick: California Court Holds that the SBRA can be Applied Retroactively
Creditor Denied Derivative Standing to Countersue Plaintiff in Chapter 7 Adversary Proceeding
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
Private Equity Firm and Owner Face Potential WARN Act Liability in Portfolio Companies’ Chapter 7 Bankruptcies