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.
SBA Issues Guidance on PPP Loans and Change of Ownership Transactions
On October 2, 2020, the U.S. Small Business Association issued a Procedural Notice providing “information concerning the required procedures for changes of ownership of an entity that has received Paycheck Protection Program (PPP)...
Management Cannot Preclude Directors’ Access to Privileged Communications
A Delaware court recently held that a corporation’s management could not preclude the corporation’s directors from accessing privileged communications between management and company counsel. In In re WeWork Litigation, 2020 Del....
Supreme Court: Mere Retention Of Property Does Not Violate Bankruptcy Automatic Stay
Resolving a split amongst the Circuit Court of Appeals, the United States Supreme Court recently held that retaining possession of a debtor’s property after a bankruptcy filing does not violate the automatic stay of 11 U.S.C. 362. The...
Federal Court Finds that OEM Purchase Order Does Not Necessarily Govern Parties’ Contract
The U.S. Eastern District of Michigan recently held that an automotive OEM’s purchase order did not, as a matter of law, govern the parties’ supply contract. In Synergen Inc. v. FCA US LLC, case no. 16-cv-11842 (E.D. Mich....
Court of Appeals Applies Michigan Law to Forum-Selection Clause, Regardless of Parties’ Choice of Law
In a case of first impression, the Michigan Court of Appeals recently held that Michigan law applies to the interpretation of a contract’s forum-selection clause, regardless of whether the contract contains a choice of law clause for a...
What Happens After a Business Files For Chapter 11 Bankruptcy?
Bankruptcy is a powerful tool that businesses use to restructure their finances and remain in business. If you are struggling financially as a business owner, consider the option to file for Chapter 11 bankruptcy.
In a Chapter 11 bankruptcy, a...
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...