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

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

In a earlier article, entitled “New Mexico Court Holds that Bankrupt Entities are Eligible for the Paycheck Protection Program,” we described how some bankruptcy courts  confronted with exigent circumstances (including several within the 1st, 5th and 10th Circuits) have granted injunctive relief to debtors in bankruptcy who have been denied  loans under Payment Protection Program… Continue reading Fifth Circuit Holds that the SBA Cannot Be Enjoined from Denying Bankrupt Entities Access to PPP Funds

Fourth Circuit Distinguishes LLC Membership Interests from Economic Interests in a Security Agreement Conveyance

Creditors Rights word cloud. Wordcloud made with text only.

In Wells Fargo Bank, N.A., f/b/o Jerome Guyant, IRA v. Highland Construction Management Services, L.P. et al., Nos. 18-2450-52 (4th Cir. March 17, 2020), the Fourth Circuit Court of Appeals recently upheld that a borrower’s indirect economic interests in a limited liability company (LLC) were not assigned to a lender under a conveyance in a security… Continue reading Fourth Circuit Distinguishes LLC Membership Interests from Economic Interests in a Security Agreement Conveyance

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

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

In LNV Corporation v. Ad Hoc Group of Second Lien Creditors (In re La Paloma Generating Company, LLC, Adv. Pro. No 19-50110 (JTD) (D. Del. January 13, 2020), a Delaware bankruptcy court recently held that actions taken by a senior secured creditor to enforce its rights under an intercreditor agreement did not constitute a breach of… Continue reading Delaware Court Holds Enforcement of Intercreditor Agreement Does not Breach Duty of Good Faith and Fair Dealing

Ninth Circuit BAP Denies Retroactive Approval of Postpetition Financing

Section 364(a) of the Bankruptcy Code allows a debtor to incur unsecured debt, like trade debt, in the ordinary course of business.  Section 364(b) of the Code provides, however, that when a debtor plans to incur unsecured debt, like a loan, outside the ordinary course, the debt must be pre-approved by the bankruptcy court after… Continue reading Ninth Circuit BAP Denies Retroactive Approval of Postpetition Financing