Spencer Fane attorneys Ryan Hardy and Eric Peterson recently provided insight for an article featured in the St. Louis Business Journal discussing pandemic-related bankruptcies.
Titled “Why more bankruptcies are likely in St. Louis,” the article outlined how small and mid-size firms in the St. Louis area are beginning to see more bankruptcies due to the COVID-19 pandemic.
Ryan explained that recent legislation has made bankruptcy more accessible to small businesses. “[The CARES Act] allows a lot more businesses to get through a case quickly, in a way that’s going to enable them to get the flexibility they need, and, importantly, it allows owners to retain their equity, which is not typically allowed in Chapter 11,” Ryan discussed in the article.
“This touches on every aspect of the economy,” Eric explained, discussing the pandemic’s economic effects. “Small to medium-size businesses are going to be under strain. If government support expires before the market is fully back, you’ll see Chapter 11s in order to buy time to survive.”
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