Will Chapter 12's New Debt Limit Fuel a Cramdown Express?
On August 23, 2019, President Trump signed into law the Family Farmer Relief Act of 2019, which increased the debt limit under Chapter 12 of the U.S. Bankruptcy Code to $10 million from about $4.15 million. This means that Chapter 12 is now a viable option for larger family farming operations,...
Squeezed by Constantly Evolving Supply and Demand
When people think of agriculture, they think of long-term businesses in steady markets. They think of family-owned businesses passing from generation to generation. They think of farmer-owned cooperatives serving their members and feeding the world. That has been changing in a dramatic manner over...
Working with Distressed Agricultural Cooperatives
Today’s volatile and uncertain economic environment is taking a toll on agricultural producers and cooperatives, creating both opportunity and challenges to the financial services organizations that support these vital businesses. Cooperatives, or co-ops, are privately held businesses owned and...
Adapting to Retail’s New Realities
The stories about moves made by an iconic toy seller attempting resurrection and a commercial real estate developer’s seeking to empower its retail tenants with advanced customer analytics have valuable lessons for struggling retailers seeking pathways out of distress. The recent history of Toys R...
The Impact of E-commerce on Retail Restructuring
Retail has been one of the most important industries in America for at least 100 years. In 2017, the industry generated $3.4 trillion in sales, and for 2020, the value expected of the industry is more than $3.9 trillion. Nevertheless, the industry has struggled. Just in 2019, more than 9,000 retail...
Managing Risks in Doing Business with Administratively Insolvent Retail Debtors
When a retailer files a Chapter 11 bankruptcy case, its suppliers face the critical decision of whether to continue shipping goods to the retail debtor post-petition. Cutting off all further shipments would limit any further loss but would also guarantee that the supplier had little to no chance of...
Navigating Liquidity in Retail Restructurings
Throughout a retail restructuring, from the prefiling period through the winddown of the proceedings, debtors and their professionals face unique challenges that arise from the nature of retail operations and the resulting direct impact on liquidity management. Although not an exhaustive recitation...
DIP Financing in Retail Bankruptcy Cases: Looking to Precedent to Reduce Litigation, Save More Retailers
With the surge in retailers filing for Chapter 11 over the last several years, precedents abound for the debtor-in-possession (DIP) packages put together to finance the bankruptcy cases of retail debtors. Certain patterns and common practices have begun to emerge. A review of large retail Chapter...
Improving the Odds of Success for Retail Bankruptcies
Last year saw over 9,300 retail store closures—more than any other year on record and a 60% increase over the roughly 5,800 closures in 2018. Whether one believes the industry is in the midst of the “retail apocalypse” or that what’s happening is merely a matter of survival of the fittest, it is a...
Retail In Crisis
These are unprecedented times. In a matter of days, the coronavirus pandemic virtually shut down American society, and with it, the wheels of industry came to a standstill. There is not one industry that has not been hit with the repercussions of this virus. In fact, “hit” may be an understatement...