What We’re Reading This Week [September 21, 2020]
The Wall Street Journal reports that on September 17, 2020, GNC Holdings, Inc. obtained authorization from the United States Bankruptcy Court for the District of Delaware to sell substantially all of its assets to one of its largest shareholders, China-based Harbin Pharmaceutical Group Co., for approximately $760 million in spite of national security concerns raised by Senator Marco Rubio (R-FL). [WSJ; Sept. 17, 2020]
An article from Finance and Commerce describes the lobbying efforts currently underway by investors in the hospitality industry, particularly those with investments in hotels, to obtain federal stimulus funds for their struggling investments. [Finance & Commerce; Sept. 15, 2020]
Reporting from Bloomberg suggests that the next significant wave of bankruptcy filings resulting from the economic fallout caused by the COVID-19 pandemic may not occur until 2021. Although a significant number of companies across industries have experienced distress since the COVID-19 pandemic commenced, many have been able to obtain federal stimulus funds or otherwise reach forbearance arrangements with lenders and avoid bankruptcy in the near-term. [Bloomberg; Sept. 15, 2020]
Senator Tom Tillis (R-NC) recently introduced Senate Bill 4479, which would modify sections 365 and 547 of the bankruptcy code by, among other things, increasing from 210 days to 300 days the amount of time a debtor has to assume, assume and assign, or reject its non-residential real property leases and protecting certain payments of rental and supplier arrearages from clawback as preferential transfers. [U.S. Senate; Aug. 6, 2020]
