Articles from Shenwick & Associates

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How Subchapter V Could Save Your Small Business

Submitted by Anonymous (not verified) on Thu, 06/25/2020 - 04:58

June 3, 2020
International Business Times
By Amy Fontinelle 

Declaring bankruptcy is never pleasant, but for small businesses it's often been disastrous. Filing under chapter 11 -- the method that allows a firm to re-organize -- was designed for large corporations. Technically, a small firm could do it, but the process was lengthy, costly, and creditor-friendly. As a result, insolvent small businesses often had to file for chapter 7, which meant closing shop entirely.

Fed worries about small business failures due to coronavirus

Submitted by Anonymous (not verified) on Thu, 06/25/2020 - 04:50

June 12, 2020
NY Post

A large number of small US business could fail during the coronavirus recession, the Federal Reserve said on Friday, slowing recovery and creating lasting damage to the world’s largest economy.

Valentino sues NYC landlord to get out of 5th Ave lease amid pandemic

Submitted by Anonymous (not verified) on Thu, 06/25/2020 - 04:46

June 22, 2020
NY Post
by: Priscilla DeGregory

Fashion brand Valentino wants to break the lease on its chic Fifth Avenue location — because the coronavirus is stopping it from conducting “high-end” business, a new lawsuit says.

INSIGHT: Retailers Considering Bankruptcy Should Look to CARES Act, Court Rulings

Submitted by Anonymous (not verified) on Thu, 06/25/2020 - 04:39

June 17, 2020
bloomberglaw.com

Retailers hit by the economic downturn are considering bankruptcy protections. Perkins Coie LLP attorneys say the CARES Act offers small businesses access to the streamlined Subchapter 5 process and recent rulings from bankruptcy courts provide cash flow relief for certain retailers operating under Chapter 11 through deferral of rent obligations, at least for now.

A Moratorium on Evictions Ends, Leaving Thousands of Tenants Fearful New York Times June 22, 2020

Submitted by Anonymous (not verified) on Tue, 06/23/2020 - 18:30

A Moratorium on Evictions Ends, Leaving Thousands of Tenants Fearful
Eviction cases are expected to soar in New York City as housing courts reopen and landlords seek to recoup income lost during the pandemic.

A moratorium on evictions that New York State imposed during the coronavirus pandemic expired over the weekend, raising fears that tens of thousands of residents struggling in the worst economic collapse since the Great Depression will be called into housing courts, which reopened on Monday.

Commercial leases in

Submitted by Anonymous (not verified) on Mon, 06/22/2020 - 05:33

Commercial leases in New York City, COVID-19 and Recent ProtestsAs a result of COVID-19, recent protests and the advent of technologies such as Zoom and Google Meet, many tenants have excess office space/s that they cannot or do not want to continue to rent  and would   like to terminate their lease or stop paying rent.At Shenwick & Associates, we have received many calls from clients with these issues and we have developed a strategy to address them.First, we review the company's financial information including a recent balance sheet, income statement,  the commercial lease and

A Tidal Wave of Bankruptcies Is Coming New York Times June 19, 2020

Submitted by Anonymous (not verified) on Fri, 06/19/2020 - 17:55

A Tidal Wave of Bankruptcies Is Coming
Experts foresee so many filings in the coming months that the courts could struggle to salvage the businesses that are worth saving.

Already, companies large and small are succumbing to the effects of the coronavirus. They include household names like Hertz and J. Crew and comparatively anonymous energy companies like Diamond Offshore Drilling and Whiting Petroleum.

And the wave of bankruptcies is going to get bigger.

Subchapter V (New Bankruptcy law subchapter) and Who May be a Debtor?

Submitted by Anonymous (not verified) on Wed, 06/10/2020 - 18:26

Subchapter V (New Bankruptcy law subchapter) and Who May be a Debtor?

In re Charles Christopher Wright, Case No. 20-01035-HB (Bankr. D.S.C. April 27, 2020), the Bankruptcy Court in South Carolina addressed the issue of who may be a “debtor” under new bankruptcy law Subchapter V (the new fast track bankruptcy chapter for small businesses).

The issue before the Court was whether business debt without an ongoing business was sufficient to meet the requirement of engaging in commercial or business activities under Subchapter V of the Bankruptcy Code.

Chapter 11 bankruptcy numbers higher than 2019 due to coronavirus - CBS News

Submitted by Anonymous (not verified) on Wed, 06/10/2020 - 17:34

Bracing for the next phase of the coronavirus recession: BankruptciesJune 9, 2020

Art Van Furniture, Bar Louie and True Religion all sell different products, but they all have one thing in common: Each has gone bankrupt this year, as the coronavirus-induced recession that started in February flattens businesses large and small.

Help cabbies steer through this crisis - New York Daily News

Submitted by Anonymous (not verified) on Thu, 06/04/2020 - 13:17

June 3, 2020

The collapse of the New York City taxi medallion market will be remembered as one of the greatest government failures in Gotham’s history. The bankruptcies and foreclosures, the suffering and the suicides were not the consequences of market forces beyond the city’s control. Instead, this enduring crisis is the product of a deregulated, overpriced, over-leveraged market that the city not only failed to regulate, but also helped create through auctions, advertising and approvals of predatory transactions.

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