Bankruptcy's 'Deep Freeze' May Be Struggling Companies’ Best Hope

In an article published by Law360 in its Expert Analysis section on May 21, 2020, Joseph T. Moldovan, the Chair of Morrison Cohen's Business Solutions, Restructuring & Governance Practice, suggests that the impending flood of bankruptcy filings may not be a bad thing.

He writes that the unique powers of the Bankruptcy Court can create a “coronagenic stasis” in the microcosm of a bankruptcy case a that may provide a temporary shelter from the exogenic attributes of the pandemic. Bankruptcy, he believes, is the best medium for pandemic-challenged companies to restructure, become nimbler and more competitive, and stay alive. It is also the most capable forum where companies that cannot overcome their difficulties can go to liquidate and fairly distribute their assets.

Click here for a PDF of the article.