News & Publications

The COVID-19 pandemic has affected one of the underpinnings of the relationship between a property owner and a commercial tenant that seeks Chapter 11 protection. Section 365(d)(3) of the Bankruptcy Code requires the commercial tenant to pay rent on a timely basis during the post-filing period unless and until its lease is rejected or assumed. Section 365(d)(3) allows a Bankruptcy Court to extend for cause the time for performance for up to 60 days following [...]

Many small businesses are facing financial challenges; some because of long-standing issues, others as a result of the sudden impact of COVID-19.  Survival in many cases will require negotiating with lenders, trade creditors, landlords, and employees with out-of-court restructurings.  Others, however, will need the protections and tools provided under the United States Bankruptcy Code and will need to file a petition for relief and in order to effectively reorganize. Chapter 11 as a Resource Chapter [...]

May 21, 2020 - The firm secured another favorable result for the litigation trustee of Sears Canada in his pursuit of clawback claims against the Canadian retail chain's parent company and shareholders in Chapter 11 proceedings. On April 23, U.S. Bankruptcy Judge Robert Drain approved a $154 million settlement between Sears Canada and parent company Sears Holdings Corp. that also requires the U.S. company to comply with discovery requests by the trustee, former Ontario Superior Court [...]