Surviving the Pandemic: Stress and Distress in the Hospitality Industry
The coronavirus outbreak has impacted the hospitality industry disproportionally more than other industries. For many companies, revenues have fallen off the cliff. Further, the uncertainty and likely overhang of disruption caused by pandemic in the hospitality industry will continue for the...
Trade Wars, Pandemics—and Yet, Retail Persists
First came subprime mortgages, the ensuing financial crisis, and the Great Recession. Then predictions came of a retail apocalypse caused by the Amazon effect. Despite years of grim headlines predicting the demise of traditional brick-and-mortar stores, retailers have continued to find ways to...
Guarding Against Insolvency Risk of Critical Vendors in the Supply Chain
Manufacturers may have hundreds or thousands of commercial contracts, each of which might be materially different. Understanding their rights and what they can do to protect themselves if a counterparty stops paying or delivering, or files for bankruptcy or some other form of insolvency proceeding...
Puts Chapter 11  Bankruptcy  Within Reach for  Small Businesses
The Small Business Reorganization Act of 2019 (SBRA), known as Subchapter V (Public Law (PL) 116-54), presents a new opportunity for reorganizing small businesses under Chapter 11 of the U.S. Bankruptcy Code. This new law became effective February 20, 2020, and was promptly expanded as of March 27...
Logistics Companies Must Shore Up Business Foundations to Keep on Trucking
While many important economic indicators for the country are being touted as the 2020 election approaches, one thing is certain and almost universally agreed upon: the $800 billion trucking industry is facing numerous headwinds, including some that are self-inflicted. According to Business Insider...
The Marine Industry: Rich in Reorganization Opportunities but Short on Cash
The maritime industry plays a vital role in the safe and economic delivery of essential goods and products to various ports in the U.S. and worldwide. In many cases, there is no viable alternative to water-borne transport of certain cargos. While there have always been haves and have-nots, the...
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...