COVID-19 Bankruptcy and Business Reorganization
Bankruptcy and Business Reorganization
Many businesses disrupted by the COVID-19 epidemic, as well as their lenders, are faced with questions about whether financially challenged business borrowers can survive using bankruptcy or some other form of financial restructuring. As part of the CARES Act, Congress has expanded the opportunity for small businesses to use a more borrower-friendly form of chapter 11 under the Small Business Reorganization Act. The availability of this relief will have to be taken into account by both borrowers and lenders in approaching questions about the future of troubled loans.
Have more questions on bankruptcy and business reorganization? Contact Andre.