Tag: Credit Risk

In the construction industry, various factors can make unfinished projects unavoidable. In recent months, the number of abandoned construction projects has increased due to higher insurance and interest rates, rising material costs, delayed shipments, labor shortages and adverse weather conditions.

Imagine a stretch of land where financial institutions are as elusive as an oasis in the desert—that’s a banking desert, an area devoid of bank branches.

In a landmark 5-4 decision in Harrington v. Purdue Pharma that will significantly reshape corporate bankruptcy practice, the U.S. Supreme Court resolved a circuit split regarding the authority of a bankruptcy court to approve releases in favor of non-debtor entities without the consent of impacted third parties. Reversing the decision of the Second Circuit, the Supreme Court’s narrow majority held that such non-consensual releases—other than in the context of asbestos-related claims—are not authorized under the Bankruptcy Code.