Re-Opening BusinessIndustries are slowly opening for business again after an unwanted hiatus to deal with the pandemic. Healthy companies are facing liquidity risks, business plans prepared Q4 2019 and Q1 2020 are obsolete. Companies that were having issues prior to Covid are in survival mode and may be losing the battle. To help preserve borrower’s Read More
If we treat the pending aftermath of the pandemic on businesses in the standard manner, a huge number of them are going to be forever shut down. Dan Dooley and Sheryl L. Toby Going back in time, in the middle market business world of insolvency practice, honest hard-working owners of companies that were over-leveraged but financially viable Read More
A bankruptcy court in Illinois has ruled that the force majeure provision in a restaurant lease excuses the tenant’s obligation to pay full rent during the time a stay-at-home order was implemented to slow the spread of COVID-19, the Wall Street Journal reported. The ruling appears to be the first of its kind after widespread closures triggered Read More
Most companies are currently either shutdown or operating on a very limited basis. Once business is restarted, demand for product or service is unknown, the ability for suppliers to provide timely product is a question mark and will all the employees return? In other words, there are a mountain of risks and the question for Read More
The Restaurant Industry much like the Retail Industry has long had too many locations and too many brands that have no current reason to exist (ironically bankruptcy filings often call these “iconic” brands). Now that the impact of the Coronus Virus has shut down the majority of the restaurant business, we are going to see Read More
Lenders are faced with difficult circumstances when a borrower’s business and the bank’s collateral is deteriorating. The downward spiral often includes declining or negative earnings, insufficient cash flow, declining enterprise value, escalating trade debt and “tripped” financial covenants. Further, management has not been able to reverse these negative trends and worse, have likely not been Read More
By Michael Boudreau CPA, CTP, CFF – November 2019 The auto industry moves the needle in many different geographic markets and it often trickles down to other commercial industries. Stress cracks at the OEM level often create shock waves down the supply chain which increases risk factors at the Tier I, II and III suppliers. Read More
By Kirk Maltais – Updated Oct. 17, 2019 1:09 am ET Cattle prices in the U.S. have risen since September, as a protein shortage in Asia drives bets that livestock will be in increasingly high demand. Live cattle futures on the CME are up 14% from the start of a rally on Sept. 10 to nearly $1.14 a Read More
July 2019 – Stephen Selbst In TSA Stores, Inc. v. Sport Dimension, Inc., the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) recently held that a term lender with a junior lien on the debtor’s inventory prevailed over a consignor that had failed to perfect its security interest under the Uniform Commercial Read More
