General
Title VII Loophole Allowing Bank Discrimination May be Soon be Closed
As our country reconciles inequity in the law, The Fair Access to Financial Services Act, introduced last week, prohibits discrimination by banks, closing a gaping loophole. Title VII subjects only certain businesses to its prohibitions, such as movie theaters, restaurants and hotels, allowing banks to treat customers differently. While many states prohibit bank discrimination, the disparity necessitates…
Read MoreThe Right to Repair Movement embraces Mobile Health
On a consumer plug today, I am excited by the “right to repair” trend that has surfaced in a proposed bill to block manufacturer imposed limits on medical device repair. While advocates worry about the environment, an important fall-out is consumer inability to take ownership of product maintenance. Of course safety is key, and I…
Read MoreSubchapter V allows Cramdown of Collateral Value
In Pearl Resources, another case of first impression under Subchapter V, a Texas court confirmed a cramdown plan with a reduced collateral value. Parsing a mix of traditional and new chapter 11 provisions, the court permitted a $7.4M replacement lien for the original $35M lien, deeming it sufficient to cover the $1.2M claim, and thus freeing up…
Read MoreSubchapter V has become a cost-effective bankruptcy lifeline for a business reboot
A group of mid-western businesses comment on their unique ability to reorganize under Subchapter V of the Bankruptcy Code in accordance with its intended goal to allow small business owners to retain control of a reorganizing company. Drafters of the new law effected much needed tweaks to the chapter 11 process, an endeavor that has proved to…
Read MoreHow Intrapreneurship is playing out in the race toward a COVID-19 vaccine
Wearing my digital health professor hat, I am sharing this article about the legal, social and political dynamics involved in forging a licensing deal between Oxford scientist inventor-founders of start-up Vaccitech, academia and big pharma AstraZeneca with the twin goal of profit and global access for a COVID-19 vaccine.
Read MoreAn Individual Chapter 11 Plan must be funded by more than Business Income
In re Patel, a recent CA bankruptcy decision, held that chapter 11’s requirement for individual debtors to pay unsecured creditors from “disposable income,” encompasses income from all sources. Note that this would equally apply in Subchapter V. The Patel Chapter 11 plan listed only motel income which was insufficient to fund a payout to unsecured creditors. While…
Read MoreDigressing to the 1st Amendment to honor Justice Ginsberg
Taking a break from bankruptcy and business, I thought I would share this piece about the importance of donor anonymity supported by the late Justice Ginsberg. There are so many fascinating facets to the law and its essence to the fabric of our society and economic ecosystem. Wishing everyone a great weekend!
Read MoreCOVID-19 spurs patent litigation among telehealth providers
Alert! All entrepreneurs and intrapraneurs in the healthcare space! COVID-19 has accelerated the advent of telehealth, and providers are vying for the #1 spot. A recent lawsuit filed by Teladoc highlights the importance of promptly securing patents and other forms of digital IP as barriers to entry from day 1.
Read MoreA defaulted chapter 13 plan can be extended under the CARES Act
Good news! A New Orleans judge has found the CARES Act to permit a 7 year extension of a chapter 13 plan whose payments were in default prior to enactment of the Act, holding that the currency of payments is irrelevant. In fact, most chapter 13 plans are in a state of default and ultimately…
Read MoreStakeholders anxiously await clarification of PPP loan forgiveness process
Borrowers and lenders are being advised to sit tight, while Congress reworks the kinks toward debt forgiveness for PPP loans. As outlined by the NYT, progress is being made toward overcoming the various hurdles so that all stakeholders will be able to achieve the initiative’s well-intended respite and fresh start.
Read More