We provide insight and analysis on complex issues affecting distressed businesses or funds throughout the United States and abroad. Our Bankruptcy team is available to speak on various bankruptcy issues and claims. Contact us to learn more.
One of the first and most important questions we receive as Chapter 11 counsel is whether and when to tell employees that a Chapter 11 bankruptcy is imminent.
Anticipating post-filing conflict is one of the more important pre-filing jobs for bankruptcy attorneys.
Toys R Us filed for Chapter 11 protection in September 2017 with more than $5 billion in funded debt, arising mostly out of financing owners received to fund taking the company private.
Ultimately, under a confirmed Chapter 11 plan, which incorporated a settlement among interested parties, Toys R Us gave a near total release of all avoidance actions to pre- and post-petition creditors.
Recently, a bankruptcy judge denied confirming a Chapter 11 plan because the Debtor preferred one creditor among a class of creditors over the others. Section 1122(a) is a mandatory prerequisite for confirmation. That section requires Chapter 11 plans place substantially similar claims in the same class.
In a July 1, 2021, statement, the Consumer Financial Protection Bureau (the “CFPB”) warned landlords and consumer reporting agencies to report rental and eviction information accurately. Among other information in the CFPB’s statement, the CFPB identified plans to watch closely whether mortgage companies and landlords are properly reporting: (i) amounts paid on behalf of a tenant through a government grant or relief program, as well as (ii) fees or penalties prohibited by the CARES Act section 4024(b) or other laws.