Posts Tagged ‘bankruptcy’
Demystifying Bankruptcy: More on tenant tips
Filing for bankruptcy can help a tenant break a long-term above-market lease, as bankruptcy law provides the tenant with a special cap on damages at three years rent. Planning ahead is key, and on the flip side, a landlord can head off a potential major loss by keeping tabs on its tenants’ financial portfolios as…
Read MoreDemystifying Bankruptcy: Filing for bankruptcy can never cause a contract default
For example, a typical clause in leases states that a tenant’s filing for bankruptcy causes a default, allowing the collection of remedies. This is merely a scare-tactic and is known as an ipso facto clause that has zero legal effect. In fact, a bankrupt tenant can even make the unilateral decision to continue the lease.
Read MoreDemystifying bankruptcy: Start your prep 3+ months ahead
Planning is key. Payment by an insolvent entity for old debt is known as a “preference,” and the creditor may have to disgorge in bankruptcy if it received a greater payout than it would in Chapter 7. As the key to bankruptcy is equitable distribution, the creditor will be paid only its pro rata share. To…
Read MoreEmployees Entitled to Bankruptcy Heads Up & Job Security
Employees in California are newly entitled to a 15-day heads up of a utility’s bankruptcy filing, as well as job security for at least 6 months after the filing. PG&E Corp. was prompted to disclose its intent to file for chapter 11 by a new California law that includes this novel provision requiring a 15 day warning to employees…
Read MoreTips for Client Management of Financial Distress Issues: How can you help your business and individual clients who find themselves at risk?
Women Owned Law, December 7, 2018
Read MoreThe Small Business Reorganization Act of 2018 features Affordable Price Points & Expedited Process
The Small Business Reorganization Act of 2018 features affordable price points and expedited process for small businesses with a debt load of $2.5 million or less. The goal is to encourage and facilitate the rebuilding and retooling of small businesses in our turbulent yet very entrepreneurial economy. The proposed law provides incentives for owners who…
Read MoreITT Tech Student Loans Settle in Bankruptcy versus other Government Loans
ITT Tech student loans settle in bankruptcy and will be paid out assuming that ITT’s bankruptcy estate has sufficient funds. The settlement that will erase nearly $600 million that 750,000 students owed ITT Technical Institute. The agreement will also refund $3 million that students paid the for-profit chain. The students asserted a $1.5 billion claim…
Read MoreBitcoin Mining Pioneer GigaWatt Seeks Bankruptcy Protection
Bitcoin mining pioneer, GigaWatt, seeks Chapter 11 bankruptcy protection in Spokane, Washington. The filing is the latest twist in an entrepreneurial saga stretching back to the early days of bitcoin and may be connected to efforts by three of the company’s majority shareholders to sell GigaWatt. One of its co-founders, David Carlson, a former Microsoft…
Read MoreUpdate: Attention Brides! David’s Bridal has filed for Chapter 11 Bankruptcy
A Chapter 11 bankruptcy case has been filed in Delaware by Conshohocken PA based wedding gown retailer David’s Bridal Inc. A Chapter 11 plan was filed with its Chapter 11 petition, so that this “pre-packaged bankruptcy case” should go through a speedier approval process than a regular bankruptcy case, as all major creditors have already agreed…
Read MoreWBLA’s Inaugural Trek to NY Law Firms!
I am so excited to help launch the Wharton Business Law Association’s first trek to visit New York law firms! Thanks and kudos to my sister network Women Owned Law hostess attorneys — Wendy Schwartz of Binder & Schwartz, Nancy Mertzel of Mertzel Law PLLC and Helene Pangalos of The Law Office of Helene Pangalos —…
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