Sameer Alifarag, a member of Pryor Cashman's Bankruptcy, Reorganization + Creditors' Rights Group, recently penned an article for the American Bankruptcy Institute. The below is an excerpt of the article which can be accessed in the links above and below.
It is now widely known that the novel coronavirus (COVID-19) pandemic changed society for a variety of industries, whom either have deteriorated significantly or now cease to exist. At the core of the pandemic's repercussions are mortgage lenders and other related companies - arguably suffering some of the most significant harm among affected industries during an unprecedented period in global history. One such company is Stearns Holdings, LLC, which, along with six debtor-affiliates (the debtors), filed for chapter 11 protection on July 9, 2019, in the U.S. Bankruptcy Court for the Southern District of New York.
Although many factors come into play when filing bankruptcy, it is undisputed that COVID-19 adds an extra burden for most, if not all, mortgage companies seeking to restructure under the Bankruptcy Code. Quickly changing times require even quicker adaptation. Such adaptation will provide the common or not-so-common mortgage lenders with a smooth path to recovery and the next version of normal.
Published by the American Bankruptcy Institute
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