A recent court decision shows an evolving stance toward cannabis companies facing financial distress and seeking bankruptcy protection. Taken together with the U.S. Department of Health and Human Services recommending that...more
While some states have moved to adopt model Uniform Commercial Code (UCC) provisions to provide a clear legal framework for commercial and secured transactions involving crypto assets, Oregon has yet to take action. This is a...more
The Eighth Circuit recently weighed in on the issue of how to determine appropriate cramdown interest rates for secured creditors in Chapter 11 bankruptcy plans under Section 1129 of the Bankruptcy Code....more
In January, a California bankruptcy court issued an opinion providing another lifeline to cannabis companies that could benefit from the protection of the federal bankruptcy code – to reorganize or liquidate assets. The...more
As we first warned last summer, crypto property held in a custodian-controlled account could become the property of that custodian in the case of a bankruptcy filing. At the time, we recommended that crypto investors avoid...more
If the ongoing fallout from the collapse of offshore cryptocurrency exchange, FTX, and now BlockFi wasn’t enough, crypto investors also lost a significant battle last month in the U.S. District Court of New Hampshire....more
Cryptocurrency investors, who were already in the icy clutches of the so-called “crypto winter,” now have another reason to shiver.
Insolvency issues are cropping up with some frequency among crypto companies, which is...more
7/21/2022
/ Bankruptcy Code ,
Code of Federal Regulations (CFR) ,
Cryptocurrency ,
Digital Assets ,
Digital Wallets ,
FDIC ,
Financial Services Industry ,
Insolvency ,
Investors ,
Money Transmitter ,
Popular ,
Securities and Exchange Commission (SEC) ,
Trading Platforms ,
Virtual Currency
The U.S. Securities and Exchange Commission (SEC) is ramping up its investigation and potential enforcement activities against sellers of nonfungible tokens (NFTs) and marketplaces that connect buyers and sellers. Regulators...more
A recent class certification decision (Williams v. Kucoin et al.[1]) from a magistrate judge in the Southern District of New York provides insight on how courts view those who enable trading in cryptocurrencies and...more
COVID-19 ushered in a volatile economic climate that has made it difficult for many companies to meet their debt obligations. These companies may soon face a lender demanding repayment of debt that the company cannot pay....more
3/10/2021
/ Bankruptcy Code ,
Chapter 11 ,
Coronavirus/COVID-19 ,
Debtors ,
Equity Swaps ,
Liquidation ,
Refinancing ,
Reorganizations ,
Secured Debt ,
Small Business ,
Stocks
Two recent lawsuits filed in the U.S. District Court for the District of Oregon illustrate that Oregon banks are none too pleased about HB 4204. This legislation, passed by the Oregon legislature in June 2020, prohibits...more
10/21/2020
/ Banks ,
CARES Act ,
Commercial Real Estate Contracts ,
Coronavirus/COVID-19 ,
Eviction ,
Foreclosure ,
Model Contract Clauses ,
Moratorium ,
Oregon ,
Residential Real Estate Contracts ,
Sovereign Immunity
At the end of August, Fannie Mae announced an extension of a temporary moratorium on residential foreclosures and evictions that was originally set to expire on August 31, 2020. The moratorium applies to single-family...more
In previous updates Tonkon Torp attorneys have addressed the applicability of Force Majeure clauses in commercial contracts. As expected, commercial renters are taking a beating, and many have been forced to close as a result...more
As COVID-19 washes over the United States, the way law is practiced has, at least temporarily, changed—and negotiation strategies must adapt as well. For potential and pending litigation, now is a good time for parties to...more
While states continue to legalize cannabis, and the federal government continues to consider softening its stance, difficult questions persist at the intersection of cannabis and bankruptcy. As the cannabis industry continues...more
The Coronavirus Aid, Relief and Economic Security Act of 2020 (“CARES Act”) was enacted on March 27, providing a suite of protections and relief for everyday Americans and the economy at large. While most coverage has focused...more