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Bankruptcy Courts Embracing Virtual ADR
The COVID-19 pandemic has had a devastating impact on businesses across the country. Big names from a variety of industries — including Hertz, GNC, Whiting Petroleum, Gold's Gym, J.C. Penney, Neiman Marcus, Lord & Taylor, 24 Hour Fitness, Brooks Brothers, Lucky Brand, California Pizza Kitchen, Men's Warehouse, Chuck E. Cheese, and PQ New York — made headlines with Chapter 11 bankruptcy filings in the wake of the lockdown.
During the first half of 2020, Chapter 11 bankruptcy filings increased by 26% over the year-prior period, according to Epiq, and a full economic and social recovery remains a long way off.
When a company files for Chapter 11, it is in the best interest of all parties involved, including creditors and employees, to wrap up the dissolution and any related disputes as quickly as possible. However, bankruptcy courts around the country have been closed during the pandemic, and will continue to be closed for the immediate future — at a time when caseloads are swelling.
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