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(Reuters) – The Small Business Administration was within its rights to deny pandemic aid to a nonprofit hospital on the basis that it was bankrupt, a federal appeals court ruled on Wednesday.

The United States 2nd Circuit Court of Appeals said in a decision that while bankruptcy law prohibits government entities from denying a debtor a permit, license, or “other similar grant” because of their state of bankruptcy, the SBA’s Paycheck Protection Program, which provided funding for small businesses affected by the COVID-19 pandemic, did not qualify for such a grant because the funding it offered was in the form of a loan.

Although many courts have considered whether PPP financing qualifies as a grant, the 2nd Circuit is the first appellate court to rule on the issue.

The three-judge panel reversed a June 2020 ruling by U.S. Bankruptcy Judge Colleen Brown in Vermont that the SBA could not deny Springfield Hospital Inc.’s PPP funding application.

Lawyers for the hospital and an SBA spokesperson did not immediately respond to requests for comment.

Springfield Hospital and Springfield Medical Care Systems Inc, a Vermont-based critical access hospital and medical service provider, filed for Chapter 11 protection in June 2019, but continued operations during bankruptcy. . He applied for $3.6 million in PPP funds while bankrupt.

The government loan program was enacted in March 2020 to provide small businesses with financing to help pay payroll and operating expenses during the pandemic. The SBA has disbursed nearly $800 billion in PPP loans.

Springfield sued the SBA in April 2020 after it denied the hospital’s request for funding. In response, the SBA argued that the funds it distributed through the PPP were loans, not grants protected by bankruptcy law.

The hospital was cleared from Chapter 11 in December 2020.

In Wednesday’s decision, written by U.S. Circuit Judge Joseph Bianco, the panel concluded that just because the SBA forgives many of the loans does not automatically qualify them as grants. Rather, businesses must meet certain financial criteria to get loan forgiveness, he said.

“In short, the mere existence of a forgiveness option does not turn the PPP into a ‘free money’ grant, as the bankruptcy court called it,” Bianco wrote.

The case is Springfield Hospital Inc v. Guzman, US Circuit Court of Appeals, No. 20-3902.

For Springfield: Andrew Helman of Dentons Bingham Greenebaum; and Adam Prescott and D. Sam Anderson of Bernstein, Shur, Sawyer & Nelson

For the SBA: Acting Assistant Attorney General Brian Boynton; Acting U.S. Attorney for the District of Vermont Jonathan Ophardt; and Joseph Salzman, Mark Stern and Lindsay Powell of the US Department of Justice

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Good health and well-being have garnered much-needed attention to staying active and leading a happy, healthy life amid the Covid-19 pandemic. Entering the third year of the coronavirus pandemic, the best way to improve your physical well-being in 2022 is to make your immune system as strong as possible.

As the world returns to routine work life in the new normal, it’s important to note simple steps that can help a person take a more proactive approach to lifestyle and health. In an interview with HT Lifestyle, Dr. Asma Alam, Consultant Nutritionist and Registered Dietitian at Gandharva Wellness Studio, said, “Getting confused is okay when it comes to nutrition and health. It is crucial to identify what is needed to optimize your health. Physical and mental health involves making good choices when it comes to things like nutrition, sleep, disease prevention, physical activity, alcohol consumption, socializing, and even managing your level of stress.”

She added: “Small steps will help improve your overall well-being and have a positive impact on your health. Start small and find your motivation in the one thing that motivates you, whether it’s old photos, planning family physical activities, creating fitness challenges, playing outside, assign chores to burn calories, etc. Only you can make positive changes in your life.

Ways to boost physical well-being in 2022:

Dr. Deepak Mittal, founder of Divine Soul Yoga and Vijay Thakkar, fitness entrepreneur and functional medicine coach, have listed some of the best ways to improve your physical well-being in 2022. These include:

1. Yoga: Even though yoga is an ancient practice that originated thousands of years ago in India, it is considered very relevant and beneficial nowadays, as the practice comprehensively addresses a wide range of physical health issues, psychological, emotional and spiritual. Most yoga poses aim to strengthen your body from within. Besides improving your muscle flexibility, strength, and toning your body, yoga can also help you lose weight, protect you from injury, improve your body posture, vitality, and metabolism. Practicing yoga can also positively affect mood, behavior, and overall mental health in a variety of ways.

2. Meditation: The ancient practice of meditation can provide a sense of calm, peace, and balance that can benefit both emotional well-being and overall health. Mind-body therapies such as meditation have been shown to help relieve anxiety, stress, fatigue, general mood and sleep disturbances, improving quality of life.

3. Healthy food: A healthy diet is the key to a healthy life. It is important to include vegetables, fruits, nuts, seeds, whole grains and healthy proteins in the diet to maintain a healthy weight and avoid nutritional deficiencies. A whole-food diet can reduce heart disease risk factors, body weight, and blood sugar. Additionally, it is important to limit the consumption of foods and beverages that contain high amounts of sugars, such as sugary snacks, candy, and sugary drinks, as this can lead to weight gain, blood sugar problems, and heart failure. increased risk of heart disease, among other dangerous conditions. .

In order to boost your immune system, add immunity-boosting fruits such as vitamin C fruits, berries and other natural foods such as ginger, garlic, spinach and green vegetables in your diet usual. Stick to naturally available foods rather than processed, packaged foods to diversify your microbiome for a healthy gut and a strong immune system.

4. Exercise regularly: Ideally 30 minutes a day in whatever form works best for you, such as cardio, strength training, strength training, yoga, zumba, cycling, etc. If you can’t stay consistent, try finding a partner or creating your own fitness community with competition. One can also use electronic step-tracking or fitness-tracking gadgets, as research shows their use has proven effects.

Fitness experts have affirmed the importance of taking care of your training, your diet and your mental well-being. They emphasized that every small step counts on our fitness journey and that starting now is crucial to experience the power of immediate action.

Over the past two years, the number of bankruptcies filed has fluctuated mainly due to the circumstances created by the pandemic. Organizations across all sectors were unprepared for such a crisis and scrambled to mitigate the financial fallout. The hardest hit industries at the start of the pandemic included retail, entertainment, travel, hospitality, restaurants and energy. Although there are still many unknowns in the future, companies are doing their best to recover. However, most government support has ceased or is ending, and rising inflation and tighter monetary policies will threaten some companies’ ability to remain financially strong. This allows for more realistic forecasts for 2022 – and what is likely on the horizon is an increase in bankruptcy filings.

Bankruptcy Review 2020 and 2021

During this chaotic and uncertain time, organizations across all sectors have had to reconfigure their operations to best adapt. Around the world, people changed their habits, including how often they left their homes, how they spent their money, and their career paths. The global economic downturn has begun. This, together with government stimulus measures, has caused bankruptcy activity. Here is a recap of the major bankruptcy trends seen throughout the pandemic:

• In 2020, there was a 40% increase in commercial deposits. Mandatory closures from March 2020 have hurt many businesses as they have experienced a sudden drop in demand for their products and services. Three hard-hit sectors are retail, energy and restaurants. Bankruptcy filings particularly increased during the second and third quarters, as many companies could not survive the effects of the pandemic. *
• Many predicted that commercial bankruptcy filings would remain high in 2021, but that was not the case. Economic conditions began to improve in early 2021 due to a number of events, including the widespread introduction of vaccines, reduced business and customer restrictions, lower unemployment rates, historically low interest rates and greater dispersion of government assistance. The result was a banner year for business bankruptcy filing, according to statistics collected by Epiq, which decreased by 50% compared to the previous year. While some struggling organizations took a wait-and-see approach and hoped government assistance would continue, others avoided bankruptcy by reorganizing their operations to keep their businesses afloat. For example, many retail and restaurant establishments have improved their online presence or created curbside and contactless options.
• Most commercial bankruptcy filings in 2021 involved low- and mid-market companies, as confirmed by small business statistics in Chapter 11, Subchapter V, collected by Epiq. There were very few mega or large Chapter 11 case filed in 2021. With access to a robust capital market and readily available financing, large organizations have been able to modify and extend their loan maturities. One exception was the Chapter 11 filing of Nordic Aviation, a regional aircraft lessor. A filing in December allowed Nordic to restructure $6.3 billion in debt.

Bankruptcy Predictions 2022

There are still many unknowns as the pandemic continues, but overall people are getting back to work and looking at the realities of the economy’s slow recovery. Organizations that lost aid or waited to see how things would turn out now have to make tough financial decisions. For many, restructuring might be the best way to continue successful operations or avoid crippling losses. Here are some 2022 predictions that feed off the pandemic bankruptcy trends seen so far:

• The economy will recover slowly and in waves. Organizations operating in industries with higher articulated risk factors for bankruptcy will see the most filings this year and into the near future, until the effects of the pandemic abate and economic conditions improve. improve. These risk factors include labor shortages, supply chain disruptions, interest rate hikes, price inflation, and lack of virtual offerings. Surges in potential coronavirus variants may also increase the risk of bankruptcy for those operating on models involving physical presence, as many in the entertainment and travel industries hang by a thread. Considering all these factors, the Industries those most vulnerable to increases in bankruptcy are retail, hospitality and travel.
• Healthcare has been a crucial industry during the pandemic as there has been an acute need for hospitals and other medical facilities to stay afloat during emerging conditions. Healthcare bankruptcies were relatively low in 2021, with just 13 filings among companies with more than $10 million in debt. One of the largest filings in 2021 was Golf Coast Health Care, LLC, which operates 28 skilled and assisted nursing facilities in Florida, Georgia and Mississippi. The industry was under financial pressure before the pandemic, however, and hospitals and Health care system revenue has declined sharply due to the COVID 19 pandemic. Hospitals have postponed elective surgeries, and many have postponed screenings, as well as primary care and other specialty visits. At the same time, the cost of acquiring PPE and other equipment has risen sharply. Organizations that have been able to postpone restructuring may need to explore bankruptcy options this year.
• Some analysts believe a student loan bubble is about to burst. Federal student loan payments were recently postponed again until May, and it’s unclear if there will be another extension or if payments will resume at some point this year. If there is no further extension, a fair prediction is that the bubble bursting theory might come true. Inflation, along with other individual debt maturing, will make it harder for many to make those payments the same way they could before the pandemic.

This is the year for organizations to take a hard look at their financial situation and create a viable plan. Bankruptcy can be a useful tool to reorganize debt and strengthen operations to achieve a better path to profitability.

If you liked it, consider reading The Future of Student Loans and Bankruptcy – Is There a Bubble Waiting to Burst?

Note: Statistical information on shared commercial bankruptcies is provided by Analysis of Epiq bankruptcies.

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United States: Progression: Bankruptcy Code dollar amounts will increase on April 1, 2022

POPULAR ARTICLES ON: Insolvency/Bankruptcy/Restructuring from the United States

London Mayor Sadiq Khan has announced that the city’s roads will become more dangerous for cyclists if road safety programs are scrapped, as the UK government has cut funding to Transport for London (TfL), the body local responsible for maintaining the city’s cycling and walking infrastructure. TfL faces a huge budget shortfall and has also warned of massive cuts to bus, tube and road services if its funding is cut. The agency also said discussions with the government were continuing in its attempt to secure long-term financial assistance.

One of the main reasons for TfL’s revenue shortfall is reduced public transport fare revenue due to the Covid pandemic. This suggests that other cities planning improvements to cycling infrastructure could suffer the same fate for the same reason. TfL’s current emergency bailout deal with the government was due to expire on February 4, but the deal has been extended for two weeks. If there is no deal before this deadline, TfL’s Healthy Streets budget, which is for cycling and walking projects, will face a forced cut of £473million and have a budget shortfall of £1.5 billion by 2024-25.

To keep its budget viable, TfL has made emergency proposals which include scrapping walking and cycling schemes, as well as ending its Direct Vision scheme to protect vulnerable road users from lorries. Khan said this would have serious consequences for planned improvements in road safety and force TfL to adopt a policy of “managed decline” as further infrastructure projects will be shelved. “The bad news is that the managed decline not only means that we cannot progress at the rate that cyclists want, but that we will not be able to preserve the junctions that we have. [improved]“Khan told the Evening Standard.

Failure to improve cycling infrastructure could also prevent people from cycling for recreation or commuting. According to a recent Australian survey, the lack of proper cycling infrastructure, with cycle lanes physically separated from traffic, prevents people, even those who own bicycles, from cycling as much as they want. Nick Bowes, chief executive of the Center for London think tank, said encouraging walking and cycling was “crucial” if London was to have safer streets, cleaner air and less congestion. “If we are to have any chance of achieving these goals, it is crucial that more people walk and cycle for shorter journeys,” he said. “But it will be all the more difficult if the budget for Transport for London’s Healthy Streets is reduced. Without a funding regulation, we will struggle to build safe, well-designed routes that help people walk and cycle more.

The fallout from a massive fraud scheme by Marin’s investment managers resulted in the sale of $436.5 million worth of North Bay properties.

The sale involved 60 sites formerly controlled by Professional Financial Investors Inc. and its associated fund, Professional Investors Security Fund Inc. Director, Ken Casey of Novato, died in 2020.

The properties, over 1.4 million square feet, were sold last month in federal bankruptcy court. Their properties range from 3,500 square feet to 85,000 square feet, including 935 residences and approximately 680,000 square feet of commercial space.

“This is one of the largest portfolio sales in our county’s history,” said Haden Ongaro, executive vice president of real estate firm Newmark Knight Frank.

At the height of the scam, Casey and his partner Lewis Wallach had amassed 80 large properties: 29 in Novato, 10 in Sonoma, and the rest scattered throughout Marin.

Wallach pleaded guilty to federal fraud charges in 2020. He admitted to being aware that the businesses had ceased to be profitable, but continued to secure properties and assure investors of their financial stability. Companies recruited new investors whose payments were used to pay interest to existing investors.

The 60 properties sold into bankruptcy went to two Bay Area-based affiliated national real estate companies, Hamilton Zanze and Graham Street Realty, and a New York-based investment firm, Davidson Kempner Capital Management.

“We look forward to investing over $50 million in capital in these properties, which are located in our own communities,” said Ashlee Cabeal, chief financial officer of Hamilton Zanze.

More than half of the $50 million is expected to be invested in residential properties in the portfolio.

The bankruptcy sale disappointed some of the 1,300 investors in the Ponzi scheme, most of whom are Marin residents.

“There were a lot of questions that were asked and unanswered about the marketing of the real estate portfolio,” said Betsy Alberty, who lived in Marin before retiring to Port Angeles, Washington, in 2018.

Alberty said that as of July 2020, the remaining assets were estimated at $555 million.

“That’s over $100 million vaporized in one year,” she said.

Prospective buyers of the property were selected to submit a so-called “stalking-horse offer”. In bankruptcy sales, an entity is usually chosen from a group of bidders to make the first bid on the remaining assets. This stalking-horse bid is used as a minimum valuation with the expectation that subsequent bids will be higher. In this case, however, there were no higher bids.

Some investors have also questioned the wisdom of consolidating commercial and residential properties into one package, especially since commercial property values ​​have suffered so much due to the COVID-19 pandemic.

Alberty, who invested $250,000 in Casey’s scheme, said she was one of the smaller investors.

“A lot of the investors are older people who can’t work anymore, who’ve lost a lot of their retirement savings,” Alberty said.

Alberty said investors were also surprised by how the professional fees associated with the bankruptcy have accrued.

“We were told at the start that the fee was going to be $10 million to $15 million,” Alberty said. “At the end of the process, we are looking at a professional fee of $30 (million) to $40 million.”

Alberty said some investors, including herself, also believed people other than Casey and Wallach were complicit in the plot.

“We have unindicted co-conspirators who are still living on the pig,” Alberty said. “They live in houses that have been purchased by the company.”

“Basically they didn’t have to give up their way of life,” she said, “as many of the 1,300 investors lost their homes. They went on food stamps. There are people who have died from the trauma of this Ponzi scheme. »

Andrew Hinkelman, senior managing director of FTI Consulting based in Troy, Mich., who was director of restructuring in the bankruptcy proceedings, declined to comment.

But a legal statement from Gregory Gotthardt, also a senior managing director at FTI, detailed the portfolio sale process and marketing efforts.

Gotthardt wrote that “FTI logged over 70 hours of direct telephone contact with over 80 potential buyers”.

“Many investment groups dismissed the portfolio as ‘non-institutional,’ meaning the properties were insufficient in size and quality to meet their investment criteria,” he wrote.

Gotthardt said other investment groups have lost interest due to adverse conditions such as low occupancy due to COVID-19, deferred maintenance and flooding issues.

“FTI’s analysis indicated that the portfolio’s likely market price was significantly lower than indicated by a slew of pre-bankruptcy broker price opinions that had been obtained by the former director of restructuring,” which pegged the value of the portfolio at between $543 million and $567. million, he writes.

“It became apparent that the companies issuing the brokers’ pricing opinions had little or no detailed information about the true operating performance of the properties,” he wrote.

AS A bankruptcy attorney, I’m often asked, “How will filing for bankruptcy change my life?”

I think people ask this question because of the negative things they may have heard about bankruptcy from friends, family, coworkers, and neighbors. They think bankruptcy means they will forever be considered pariahs in our economy. So instead of focusing on the pros and cons of getting out of debt, they tend to focus more on the possible downsides. Of course, the decision to declare bankruptcy should never be taken lightly, but if it suits your situation, it may be the very solution you need to put the past behind you and move on to bigger and better things. in your life. Again, while bankruptcy isn’t for everyone, millions of people who have no way of getting out of debt have found it to be the BEST thing they’ve ever had. made to start again. It proved to be a lifesaver for people who found themselves in a financial situation from which they could no longer extricate themselves. Yes, debt can be a huge trap for many, and when you don’t have enough resources to pay your debts every month while maintaining a fair standard of living, you often have no choice but to keep borrowing just to survive. It can become a vicious cycle where you find yourself buried deeper in an ever-widening financial hole. Bankruptcy might be the tool you need to save yourself from being buried under a mountain of debt.

If you can pay your bills, YOU SHOULD. But if you’ve done your best, but have reached a point where nothing short of filing for bankruptcy can help, bankruptcy could be a big turning point in your life. Bankruptcy gives you the chance to erase the past, learn from all the mistakes you’ve made, and start over. Where would most of us be today without having been given a second chance? That’s exactly what bankruptcy provides – another chance to rebuild your finances, your credit, and your life.

There are many positive changes that can come from filing for bankruptcy. First, peace of mind. How about a good night’s sleep for a change? If you have creditors constantly harassing and calling you, the instant relief that bankruptcy brings allows you to breathe, think and feel like a human being again. If creditors threaten to take what little you have, bankruptcy can also protect everything you’ve worked so hard for, and you can sleep better at night knowing that creditors won’t be able to follow through on their threats.

Once you are relieved of the burden of debt, your future can become exciting again. Regaining control of your finances is just the first step. Once you are debt free, you may now be able to plan for retirement, your children’s education, or start saving again. You can stop living your aimless life without a financial plan. Life after bankruptcy depends on what you do after the law gives you that badly needed second chance to recover and rebuild your life.

* * *

NOTE: Due to the COVID-19 pandemic, I am offering free consultations OVER THE PHONE to anyone who needs help dealing with their debt issues.

* * *

None of the information contained herein is intended to provide legal advice for any specific situation. Atti. Ray Bulaon has successfully helped over 5,000 clients get out of debt. For a free evaluation of your situation by an attorney, please call RJB Law Offices toll-free at 1-866-477-7772.

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The SEADRILL 3. REUTERS / Luis Enrique Ascui / Files

(Reuters) – A unit of offshore driller Seadrill Ltd filed a fast-track reorganization plan in Houston bankruptcy court on Tuesday, where it hopes to seek approval of the proposal on Wednesday.

The case comes just months after its parent entity emerged from its own bankruptcy proceedings. This reorganization plan is expected to come into effect early this year. According to a statement by Financial Controller Tyson de Souza, the Chapter 11 affair of Seadrill New Finance Ltd is supposed to be the “end piece” of the overall restructuring efforts of the Seadrill Group.

De Souza said there was no objection to the plan and that “there is no doubt that it is in the best interests” of the company, which is represented by Kirkland & Ellis.

A representative from Seadrill Ltd did not immediately respond to a request for comment.

Seadrill New Finance, which has approximately $ 535 million in guaranteed debt, does not operate on its own. It serves as a holding company for a joint venture with an investment fund controlled by Fintech Holdings Ltd. The joint venture, SeaMex Ltd, owns five rigs in Mexico and underwent restructuring last year after state oil company Pemex, a major customer, failed to pay.

Under the proposed plan, holders of secured notes will repossess most of the shares of Seadrill New Finance. The company, which says it has lined up the votes it needs from creditors, will ask U.S. bankruptcy judge David Jones to approve the plan on Wednesday afternoon.

Seadrill Ltd went bankrupt in 2018, emerging with billions of dollars in lost debt and $ 1 billion in new investments. He returned to Chapter 11 in 2021, blaming the sustained downturn in the oil and gas market and the economic impact of the COVID-19 pandemic.

Jones signed Seadrill Ltd’s latest restructuring plan in October, which aimed to reduce the company’s $ 5.6 billion debt by $ 4.9 billion.

Although unusual, one-day cases in Chapter 11 have appeared occasionally in recent years. Kirkland, who also represented the parent entity in its Chapter 11 cases, has previously guided companies through these types of quick restructurings in court.

The case is In re Seadrill New Finance Ltd, United States Bankruptcy Court, Southern District of Texas, 22-9001.

For Seadrill New Finance: Anup Sathy, Ross Kwasteniet, Spencer Winters, Christopher Marcus and Jaimie Fedell of Kirkland & Ellis; and Matthew Cavenaugh, Jennifer Wertz, Vienna Anaya and Victoria Argeroplos of Jackson Walker

Read more:

Mexican Ministry of Finance Completes Refinancing of Pemex Short-Term Debt

Seadrill lenders agree to extend cash usage, for now

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