Retailers and restaurants are facing unprecedented challenges due to the impact of the COVID-19 crisis. Many of these businesses who have sought Chapter 11 protection have used the Bankruptcy Code to seek a “pause” in bankruptcy proceedings, and more specifically, a deferral of post-petition rent obligations due to landlords. While it may have been previously unheard of to take a “time-out” during Chapter 11 proceedings, a growing number of debtors and their professionals view this as necessary in the current financial climate, especially when the full impact of this novel crisis is not known, making it difficult to determine the path forward.
In a recent opinion piece published by Turnarounds & Workouts, LRC partner Kerri Mumford asks and answers “How Far Can Debtors Take Motions to Pause in Chapter 11?” in an article co-authored by LRC associate Howard Robertson and Stretto managing director Travis Vandell.
Turnarounds & Workouts is a news magazine for corporate restructuring professionals such as bankruptcy attorneys, financial advisers, turnaround managers, investment bankers, distressed investors, claims traders, trustees, academics and business journalists.