News & Publications

In March, the U.S. Court of Appeals for the Second Circuit joined a growing majority of courts with Springfield Hospital, Inc. v. Administrator for the U.S. SBA, holding that no matter how forgiving its terms, a CARES Act's Paycheck Protection Program ("PPP") loan is not protected under section 525(a) of the Bankruptcy Code, which prohibits governmental units from denying, revoking, suspending, or refusing to renew a license, permit, charter, franchise, or other similar grant to a debtor solely [...]

Perhaps surprisingly given the rarity of such cases, a handful of high-profile court rulings recently have addressed whether a solvent chapter 11 debtor is obligated to pay postpetition, pre-effective date interest ("pendency interest") to unsecured creditors to render their claims "unimpaired" under a chapter 11 plan and, if so, at what rate. Some of these cases have also involved the enforceability of noteholder claims for "make-whole" premiums triggered by the debtors' redemption of their notes [...]

The recent bankruptcy case of In re Creative Hairdressers, Inc. et al,  Case Nos. 20-14583 and 20-14584 (jointly administered) (Bankr. D. Md., March 3, 2022) involved the intersection of IRC section 4980H's employer shared responsibility payment and bankruptcy law. Bankruptcy and Section 4980H's Employer Shared Responsibility Payment This case addresses an interesting intersection of tax and bankruptcy law.  Specifically, it looks at the bankruptcy court's treatment of claims made by the Internal Revenue Service (IRS) under §4980H of the [...]