Insolvency/Restructuring

Corrections to the moratorium

At the beginning of the month Russian regulators implemented a draft law, which provides for the possibility of the Government of the Russian Federation by its act to introduce a moratorium on initiation of bankruptcy proceedings under natural and man-made emergencies, significant changes in the ruble exchange rate and similar exceptional circumstances (for more details see the update). The moratorium on bankruptcy has been in force in Russia since April 4, but now the Law on Bankruptcy is being corrected again. The need for amendments is due to the rushed adoption of the Law, as well as the reaction to criticism from the professional community The law providing for the amendment was signed by the President of the Russian Federation and comes into force on April 24. In particular, the new law establishes the following changes to the regime of the moratorium on bankruptcy.

Read full article

“Restore Liquidity” Decree: the entry into force of the New Code of business crisis and insolvency is postponed

“Restore Liquidity” Decree: the entry into force of the New Code of business crisis and insolvency is postponed
In the current macroeconomic emergency situation, the Italian Law Decree no. 23 of April 8,…

The Government’s decision is motivated by the fact that, giving birth to an instrument never tested before and studied to face, originally, only “ordinary” crises, could be, in this period of emergency, inappropriate.

Read full article

On Our Watch: Marketplace Lending in the Age of COVID-19

Marketplace lending took root in the shadow of the last financial crisis. Now, the question for consumers, businesses and marketplace lenders (MPLs) alike, is whether the conditions are right for it to thrive in the wake of the coronavirus and what may be the “deepest recession on record.”

No doubt, cash-strapped consumers and small businesses will want to turn to nonbank lenders, such as MPLs and other fintech companies, for funding. MPLs may even be able to provide those loans through the recently announced Paycheck Protection Program (PPP) of the “Coronavirus Aid, Relief and Economic Security Act” (CARES Act). But there are hurdles this time around in what is currently an economic, rather than financial, crisis. Investors already seem to recognize this, as publicly traded MPLs continue to trade at or near all-time lows. Read more…

Read full article

How Subprime RMBS Can Prepare Us for Subprime Auto Litigation in the Time of COVID-19

“Madness . . . is like gravity, all it takes is a little push.”
– The Joker, The Dark Knight, 2008

As our readers know, as far back as 2017, we sounded the alarm on the parallels between pre-crisis residential-mortgage backed securities (RMBS) and today’s subprime auto ABS. Read more…

Read full article

Could the Covid-19 Insolvency Law Reforms save distressed businesses?

The Government is expediting reforms to UK Insolvency Law to help companies avoid
insolvency as a result of the Covid-19 outbreak. The changes are intended to: Read more…

Read full article

Time to Buckle Up: The State of Subprime Auto Risks

2019 seems far behind in the rear mirror. Way back then, in our 2019 year-end review, we warned that an economic downturn could cause latent market risks to be seen more clearly. Higher delinquencies and longer terms were among the trends that were intensifying beneath the surface, causing cracks to form on the road ahead. Read more…

Read full article

FAQ – When a Commercial Tenant Files Bankruptcy: What Landlords Need to Know

The rapid outbreak of the novel coronavirus (COVID-19) has caused widespread
business disruptions. Bankruptcy cases will likely be on the rise as a result,
particularly in hard-hit, consumer-facing industries like retail, which has already
seen the recent bankruptcy filings of Payless Shoes, Destination Maternity and
Modell’s Sporting Goods. Against this backdrop, there is no better time than the
present for a refresher on the special protections afforded commercial landlords
under the Bankruptcy Code, and the counterbalancing restrictions imposed on
their rights as creditors. Read more…

Read full article

Orders and collections as usual in a pandemic? Looking ahead while addressing current needs

Thousands of businesses across the country are looking at months of extended business distress due to the spread of COVID-19, and many companies are reevaluating their books and accounts receivable to determine cash flow issues. Given the unknown amount of time until business resumes as usual, your company may want to consider the following when planning for cash flow issues and determining strategies for orders and collections in the coming months. READ MORE

Read full article

Moratorium on initiating bankruptcy proceedings

In the time of coronavirus Russian regulators implemented package of emergency legislation including Insolvency law. On April 1, the law was published, and on April 3, the Government exercised the right and introduced a moratorium on initiating bankruptcy proceedings for certain categories of debtors for 6 months.

Read full article

FIZETÉSKÉPTELENSÉG FENYEGET? MEGVÁLTOZIK A CÉGVEZETŐ FELELŐSSÉGE

A fenyegető gazdasági válság előreláthatólag számos vállalkozás pénzügyi helyzetét fogja megingatni. Ezeknél a vállalkozásoknál módosul a cégvezető felelőssége is: csődközeli helyzetben a vezető ugyanis már nem csak a társaság, hanem a hitelezők érdekeit is köteles figyelembe venni. De ami egyszerű a papíron, az nem annyira az a gyakorlatban. Read more…

Read full article