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Pandemic Forces Small Restaurants to Make Tough Bankruptcy Choices
The 2020 pandemic and resulting economic upheaval has left many sectors of the economy — and employees and others who depend on them — in distress. Others have navigated the current environment better than expected. For example, for operators of hospitality businesses, it has been one reality; for video-conference companies, it has presented an opportunity. Perhaps no sector has been more challenged than the restaurant industry. And, as is often the case, these difficult situations and the resulting tough choices must be addressed in the bankruptcy system.
While most media attention has been reserved for large economic retailers like Neiman Marcus and J.C. Penney, and large restaurant chains, today we report on a small restaurant chain and the choices that it had made.
In In re The Krystal Co., Case No. 20-61065-pwb, Bankruptcy Judge Paul W. Bonapfel of the U.S. Bankruptcy Court for the Northern District of Georgia addressed objections by individual employees and trade creditors to dismissal of a Chapter 11 case after the debtor's assets were sold with court approval in an effort to keep the business operating, albeit on a smaller platform. The objectors would not receive any recovery on their claims regardless of what happened in the case. Bonapfel's opinion explains, in layman terms, how the system produced this outcome.
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?