Insolvency and Secured Transactions


Author: Aaron M. Kaufman

Over the years, much has been written about the Bankruptcy Code’s treatment of small businesses, and the American Bankruptcy Institute Commission’s testimony to Congress this summer made clear that the existing law fell short of providing necessary relief for small businesses. For example, of the 18,000 small business bankruptcy cases filed between 2008 and 2015, less than 27% of those cases resulted in confirmed plans of reorganization. And these numbers excluded countless small businesses that, for a variety of reasons, did not or could not seek bankruptcy relief. See Robert J. Keach, ABI Testifies on Family Farmers and Small Business Reorganizations, XXXVIII ABI Journal 8, 8-9, August 2019, available at https://www.abi.org/abi-journal/abi-testifies-on-family-farmers-and-small-business-reorganizations (subscription required).

Read more: New Bankruptcy Laws Offer Hope for Small Businesses, Family Farmers and Service Members


Author: Katie James

The 2018 Autumn Budget introduced a multitude of changes in respect of HMRC, from amendments to the "personal company" tests for Entrepreneurs' Relief to the extension of Stamp Duty Land Tax first time buyer's relief. One change which seems to have flown largely under the radar is HMRC's move to place themselves as a preferential creditor in respect of taxes that are to be paid by a business's employees or customers but held on trust by the business when a business enters insolvency.

Read more: HMRC to be preferential creditor in corporate insolvency


Author: Stephen B. Selbst

Passive investors in small businesses often take a seat on the board of directors as a way to keep an eye on their investments. But the recent decision in In re Mundo Latino Market, Inc., shows the peril of a director’s failure to actively supervise the business’s employees.

Mundo Latino was a food and household supply business in upper Manhattan. It was capitalized with $1 million from Kathryn Bedke, who owned 70% of the shares of the business, and $100,000 from Kathryn Holler. Ms. Bedke held the titles of vice president and director, and Ms. Holler was president, treasurer and a director. Ms. Bedke had a full-time job elsewhere and did not operate the business or work at the premises.

Read more: Passive Investor, Beware!


Author: Fatih Isik

Introduction

A significant part of the recent legislative amendments to improve the investment environment are made to Enforcement and Bankruptcy Law ("EBL") numbered 2004. The amendments made within the scope of Law numbered 7101 on the Amendments in Enforcement and Bankruptcy Law and Certain Laws1 ("Law numbered 7101") and the Law numbered 7078 on the Ratification of the Statutory Decree on Certain Regulations within the Scope of State of Emergency with Alterations2 ("Law numbered 7078") shall be addressed.

Read more: Recent Developments on the Enforcement and Bankruptcy Law and Concordat


On the heels of last year’s Hurricane Irma, everyone is mindful about the upcoming 2018 hurricane season. Last year, Hurricane Irma hit Florida and left about 65% of the state without power. In the months following the storm, businesses in the affected areas often struggled to recover, and it was a more difficult process for some more than for others. Those companies that have relied too much on leverage and stretched their borrowing to the limit may find it difficult to get back on their feet.

Read more: Are You Caught in the Storm?: What Bankruptcy Trustees Need to Know About Hurricane Claims