COVID-19 News, Member News

Thompson Hine | New COVID-19 Relief Package Provides Additional Pandemic Bankruptcy Protections

The SBA Administrator can make corporate debtors eligible for Paycheck Protection Program (PPP) loans at any time by notifying the Office of the U.S. Trustee. Suppliers and commercial landlords have reduced preference exposure based on payments made to cover arrearages. Subchapter V debtors can extend the time to perform under commercial leases beyond the initial 60 days. On December 21, 2020, Congress passed a monumental $900 billion pandemic relief package. It includes several changes to the Bankruptcy Code that...

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COVID-19 News, Member News, New York Related News

RPJ | Covid-19 Regulations: Where We Are and Where We Are Headed

Introduction The rollercoaster ride of 2020 has sure had its ups and downs, and 2021 is destined to continue this trend with regulatory action expanding and contracting in order to attempt to contain the spread of Covid-19 while balancing the desire to keep the economy going. This guide examines regulations that have been put in place primarily in New York to deal with Covid-19, but also throughout the United States, and projects future regulatory and related trends and repercussions that...

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Chapter News, COVID-19 News

Coronavirus response: Tackling non-performing loans (NPLs) to enable banks to support EU households and businesses

The European Commission has today presented a strategy to prevent a future build-up of non-performing loans (NPLs) across the European Union, as a result of the coronavirus crisis. The strategy aims to ensure that EU households and businesses continue to have access to the funding they need throughout the crisis. Banks have a crucial role to play in mitigating the effects of the coronavirus crisis, by maintaining the financing of the economy. This is key in order to support the EU's economic...

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COVID-19 News, Member News

CLA | Forgiveness 101 for PPP Loans

Key insights Post-election, the SBA has provided more PPP loan forgiveness approvals. The IRS also recently issued guidance that impacts PPP loans. Under ASC 470, liability debt would be derecognized when the debtor has been “legally released” or when the loan is repaid. With the election behind us, we have seen more Paycheck Protection Program (PPP) loan forgiveness approvals by the Small Business Administration (SBA), and now there is guidance recently released by the IRS. Take a deeper dive into...

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Chapter News, COVID-19 News

U.S. FED | Speech on Coronavirus Aid, Relief, and Economic Security Act

Speech by Chair Jerome H. Powell before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Washington, D.C. | December 01, 2020 | Chairman Crapo, Ranking Member Brown, and other members of the Committee, thank you for the opportunity to update you on our ongoing measures to address the hardship wrought by the pandemic. Our public health professionals continue to deliver our most important response, and we remain grateful for their service. The Federal Reserve, along with others across government, is...

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COVID-19 News, Member News

Troutman Pepper | Changes to Target’s Business Prompted by COVID-19 Pandemic Breached Ordinary Course Covenant, Permitting Buyer to Escape Deal

Who Needs to Know Companies and individuals negotiating contracts governed by Delaware law. Why It Matters In a recent decision, the Delaware Court of Chancery permitted a buyer to escape its obligation to acquire a target from a seller under the parties’ purchase agreement because the target had made extensive changes to its business as a result of the COVID-19 pandemic in violation of the agreement’s ordinary course of business covenant. The court’s holding reaffirms that standard ordinary course of business covenants...

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COVID-19 News, Member News

SH Legal | Practical insights on M&A transactions during COVID-19

In this series of briefing notes, we will look at some key areas of a private M&A transaction that may be impacted during COVID-19 era. This note is designed to focus on the valuation and structuring issues that may arise in these transactions. Valuation and purchase price structure The market uncertainty caused by the COVID-19 outbreak has led to difficulties in valuing the target and forecasting its future business performance. As such, it is not hard to see why buyers now...

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Chapter News, COVID-19 News

EU Council greenlights temporary VAT relief on COVID-19 vaccines and test kits

The EU is taking steps to ensure affordable access to COVID-19 vaccines and testing kits. The Council today adopted amendments to the directive on the common system of value added tax (VAT) to allow member states to temporarily exempt COVID-19 vaccines and testing kits, as well as closely related services, from VAT. Member states may also apply a reduced VAT rate to testing kits and closely related services, if they choose to do so. This possibility is already available for vaccines. The...

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Chapter News, COVID-19 News

OECD | COVID-19 crisis adds pressure to private and public pensions systems

The COVID-19 crisis has compounded the challenges facing retirement savings and old-age pension arrangements and added new ones, according to a new OECD report. The OECD Pensions Outlook 2020 says that population ageing, low growth, low returns and low interest rates were already weighing heavily on funded and pay-as-you-go pension plans, defined benefit and defined contribution schemes, as well as private and public retirement provisions before the outbreak of the pandemic. The shocks from the global health and economic crisis will...

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Chapter News, COVID-19 News

OECD tax revenues fall slightly before the COVID-19 pandemic, but countries face much larger decreases ahead, particularly from consumption taxes

December 03, 2020 | Tax revenues fell across the OECD for the first time in a decade during 2019, but a much larger decrease is expected in 2020 as the COVID-19 pandemic drives down economic activity and consumption tax revenues, according to new OECD research published today. The 2020 edition of the OECD’s annual Revenue Statistics publication shows that the average tax-to-GDP ratio has fallen to 33.8% in 2019, a decrease of 0.1 percentage points since 2018. This was due to decreases...

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