Goodrich Quality Theaters has filed for bankruptcy in the U.S. Bankruptcy Court for the Western District of Michigan on February 24, 2020. The company has 30 locations across Michigan, Illinois, Indiana, Florida, and Missouri. Renovations were made to many of the theaters leaving the company with nearly $30 million in debt owed to companies such as Disney, IMAX, Microsoft, Pepsi, and many others. The company's theaters are expected to stay open.
Chapter 11 Bankruptcy Basics
The Impact of the Coronavirus on the Supply Chain
In addition to the loss of life, the coronavirus is significantly impacting the supply chain in the automotive industry. The increasing spread of the virus in and outside of China has not only shut down plants in China, but will likely lead to...
What Does the Small Business Reorganization Act of 2019 (SBRA) Mean for Small Businesses?
Chapter 11 bankruptcy is a successful tool for large corporations and individuals. However, Chapter 11 bankruptcy presents many hurdles for small businesses and sometimes proves too costly. The Small Business Reorganization Act of 2019 is...
Supreme Court: Trademark Use Contract Rights Survive Rejection
The Supreme Court’s recent decision in Mission Product Holdings v. Tempnology clarifies what happens to contractual rights upon a debtor’s rejection of a contract under Section 365 of the Bankruptcy Code. The question before the...
Delaware Supreme Court Holds Operating Agreement May Void Related Party Contract
The Delaware Supreme Court recently held that a limited liability company’s operating agreement may void a contract entered into between the company and a related party. In CompoSecure, LLC v. CardUX, LLC, 2018 Del. LEXIS 496 (Del. Nov. 7,...
Sixth Circuit Establishes a Two-Prong Test for Finality in Bankruptcy Appeals
The Sixth Circuit Court of Appeals recently addressed the issue of finality in bankruptcy appeal cases. In Ritzen Group, Inc. v. Jackson Masonry, LLC, case nos. 18-5157/5161 (6th Cir. 2018), the court established a two-prong test that should be...
Sixth Circuit Bankruptcy Court Discharges Student Loan Debt for “Functionally Disabled” Debtor
A debtor’s ability to discharge student loan debt gained traction in an October 4, 2018 opinion by Bankruptcy Judge Mary Ann Whipple of Toledo, Ohio. In In re Pierson, 17-3096 (Bankr. N.D. Ohio Oct. 4, 2018), the Bankruptcy Court found that...
Law Firm’s Retainer Not Required to be Returned to Bankruptcy Estate
The United States Bankruptcy Court for the Southern District of Florida dismissed an adversary proceeding filed by a secured lender seeking the return of a $200,000 retainer provided by a borrower to its bankruptcy counsel prior to filing for...