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Chapter 11 Plans of Reorganization and Equipment Lessors
Filing Chapter 11 is a very expensive proposition these days. The filing fees, coupled with the astronomical attorneys' and special litigation counsels' fees, plus the accountants' fees, are just a few of the expenses for a debtor-in-possession (“DIP”). So what does this mean for us as equipment lessors? It means we must react accordingly and often very quickly to protect ourselves.
It means that many company DIPs set up their exit strategy before they file Chapter 11 to minimize the time that they are in a Chapter 11 bankruptcy proceeding and thereby minimize their costs for attorneys and other fees that the DIPs incur. That equates to us, as equipment lessors, having to play catch-up after being taken by surprise by a slew of so-called “First Day Motions” (such as Motions to Approve Cash Collateral or Debtor-in-Possession Financing, Motions to Pay Pre-Petition Wages, Motions to Pay Utilities, Motions to Pay Critical Vendors, Motions to Employ DIP Attorneys and others similar motions). You might even see a Motion to Sell Substantially All Assets of the DIP, or a Disclosure Statement and Plan of Reorganization filed just a few weeks after the Chapter 11 filing. Just as we are reading the court orders on the First Day Motions, we are inundated with additional pages of documents to read and analyze in order to protect our rights before it's too late.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.