Capital Markets, M&A, Loan Financing

Today, a federal judge in Maryland denied an emergency motion seeking to block Bank of America from applying eligibility restrictions to its lending under the $349 billion Paycheck Protection Program (“PPP”). The motion for a temporary restraining order and preliminary injunction was filed by four small businesses, which had alleged that Bank of America only accepted applications for PPP loans from small business checking customers that were already borrowers at the bank or that were not also borrowers at any other bank. The businesses alleged that these limitations violated the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which established the PPP, and the Small Business Act (“SBA”).

Continue Reading Maryland Federal Court Denies Attempt to Block Bank of America’s Eligibility Restrictions for Paycheck Protection Program Loans

For many of us who have been around for a while, it seems as if we have seen this movie before.  An economic downturn leads to increased borrower delinquencies on mortgage loans with a progressively increasing obligation for the servicers of those mortgage loans to make principal and interest advances to cover the delinquencies.

But

On April 7, 2020, the US federal banking regulators issued a revised interagency statement (the “Revised Statement”) concerning agency treatment of loan modifications made in response to COVID-19.[1] The Revised Statement updates a prior statement that the regulators issued on March 22, 2020 to (i) address the enactment of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act on March 27, 2020[2] and (ii) provide greater clarity on whether a modified loan should be classified as a troubled debt restructuring (“TDR”) and the regulators’ enforcement posture with respect to loan modifications. See our Legal Update on the prior statement. A redline of the Revised Statement against the March 22 statement is included at Annex A.

Continue Reading Revised Guidance on Accounting for and Making Loan Modifications

Hosted by Intelligize

The COVID-19 pandemic has raised a number of issues specific to public companies that file reports with the Securities and Exchange Commission. Among the issues impacted by COVID-19 that the speakers we will discuss in this webcast will be:

  • Risk factors and forward-looking information disclosures
  • Other SEC disclosure topics
  • Earnings releases, earnings

As a result of market volatility related to the COVID-19 pandemic, many companies may be at risk of losing their status as well-known seasoned issuers (“WKSIs”) under the federal securities laws. Our blog post reviews the requirements for WKSI status.

Continue Reading on Mayer Brown’s Free Writings + Perspectives blog.

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If you wish

For public companies concerned about steep declines in their day-to-day market cap in this volatile environment and how that volatility may impact their status as a large accelerated, accelerated or non-accelerated (including a small reporting company) filer, our blog post includes a few reminders relating to the relevant determination dates.

Continue reading on Mayer Brown’s

The disruptions in economic conditions caused by COVID-19 are reaching the commercial paper and longer term debt capital markets. The Board of Governors of the US Federal Reserve System has already set into motion three separate facilities as part of its effort to facilitate credit and help alleviate collateral volatility that are expressly available to

The COVID-19 coronavirus has caused significant disruption across the globe and injected considerable uncertainty into financial markets. Governmental authorities and market participants continue to assess the long-term effects of the coronavirus outbreak as the short-term effects begin to be felt. Of particular concern for many of our clients is COVID-19’s impact on lenders’ commitments under existing credit facilities and on borrowers’ financial performance metrics.

Continue Reading COVID-19 Considerations in Private Credit Transactions

In response to the COVID-19 outbreak in the United States, all 50 states, Puerto Rico, and the District of Columbia have adopted certain measures intended to encourage “social distancing” in an effort to limit human contact and thus slow down the spread of the virus. Cities and states have adopted various measures to try to achieve this goal, including by closing schools and/or limiting or prohibiting large gatherings (such as by cancelling concerts, plays, museums, and eating in restaurants and bars). Some governments are also acting to protect people who get sick and cannot work or who are laid off. Several states have recently taken even more aggressive action.

In just the last week, some jurisdictions have issued orders advising their residents to stay in their homes (i.e., “shelter in place” orders). Other states have imposed strict limits on which businesses can remain open and/or have imposed requirements that “nonessential” workers stay home. As of now, these types of restrictions are in effect in, among other places, California, New York, Illinois, Ohio, Pennsylvania, New Jersey, and Connecticut. At present, these types of orders reach one in four Americans. As a result, businesses and workers have been confronted with the critical issue of whether they can operate and who, if anyone, can leave home to work on premises.

These actions are similar to many of those that have been taken by other jurisdictions, such as in China, Italy, and France. As governments have imposed these tight restrictions, they have also recognized the need to allow certain businesses to continue to operate as necessary to provide essential goods and services. These orders have been imposed quickly, responding to the immediate needs of each community, and thus neither the orders nor the exemptions to the orders allowing certain activities to continue are consistent across jurisdictions or always well-defined.

This Update provides guidance on the scope of essential services or businesses in five US jurisdictions that have adopted restrictive measures to fight the spread of the virus: CA, NY, IL, OH and PA. Alerts covering additional jurisdictions across the globe, and updates regarding these jurisdictions, will follow.


Continue Reading Who or What Is an “Essential” Business or Service That May Be Exempt from Shelter in Place or Stay at Home Orders?

As the spread of COVID-19 accelerates, and as governments ramp up their response to increasing cases of COVID-19, every sector is assessing the impact of the novel COVID-19 virus on their business. Here, we consider how COVID-19 might impact the warranty and indemnity insurance market and what considerations may come into play for operators in this space.

Continue Reading COVID-19 and the Warranty & Indemnity Market