The global pandemic has devastated companies large and small, particularly in sectors such as travel, hospitality, and entertainment, but also in the blue-chip domains of manufacturing, retail, and energy. For many businesses, a sharp decline in revenue led to a liquidity crunch severe enough to threaten debt service and raise the specter of bankruptcy.
Some of the earliest emergency measures adopted by many governments in 2020 were designed to stave off a tsunami of insolvencies. While interim lending, tax breaks, and similar steps will be enough to bridge the gap for some businesses, corporate insolvencies are expected to rise significantly around the world this year. In the U.S., for example, bankruptcies are projected to increase 57…
Read the full article at: https://news.bloomberglaw.com/daily-labor-report/pandemic-related-insolvencies-reveal-international-arbitration-issues
