The storied American retail giant JCPenney filed for Chapter 11 bankruptcy in May 2020 as the COVID-19 pandemic finally crippled an already-struggling company. Days after filing, JCPenney obtained approval from the United States Bankruptcy Court for the Southern District of Texas to spend the $500 million in cash it had on hand. The Court authorized […]
Tagged: Chapter 11
Understanding and protecting ‘cash collateral’ in Chapter 11 Bankruptcy
June 22nd, 2020 | Chapter 11Alternatives to bankruptcy for small businesses
June 19th, 2020 | Chapter 11The COVID-19 pandemic has wreaked havoc on small businesses across the United States. Public safety measures that have been instituted have resulted in closures, furloughs, layoffs, supply chain disruptions, and dwindling cash reserves for businesses of all sizes. These closures have had a greater impact on small businesses. In response to this unprecedented economic disruption, […]
Force majeure clauses and the COVID-19 pandemic
June 9th, 2020 | Chapter 11A decision handed down on June 3, 2020, by the United States Bankruptcy Court for the Northern District of Illinois is one of the first to address the subject of force majeure in the context of the COVID-19 pandemic. The question presented was whether a Chapter 11 debtor – in this case, a Chicago restaurant […]