One critical component of chapter 11 bankruptcy cases is debtor ability to assume, reject executory contracts, nonresidential real property leases. Bankruptcy Code section 365 says chapter 11 debtor has 120 days to assume, reject leases. Window can be extended by court order
Some of the key amendments include:
PPP Loans for Corporate Debtors
The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), enacted in March, 2020, established the Paycheck Protection Program (PPP) which offered forgivable loans to qualifying small businesses. Initially, the Small Business Administration (SBA) refused to issue PPP loans to debtors, but under the amendments to Section 364 of the Code corporate debtors may be eligible for PPP loans with the authorization of the bankruptcy court. However, this amendment will not become effective unless and until the SBA Administrator submits a letter to the Office of the United States Trustee acknowledging that debtors qualify for CARES Act funding. Assuming the SBA Administrator permits the issuance of PPP loans to debtors, PPP loans for each individual corporate debtor will only be issued upon the approval of the bankruptcy court. The period to apply for PPP funding under the CAA expires on March 31, 2021.