A One-Day Ch. 11 Turnaround? Belk Shows It Can Be Done
Amy Zuccarello was quoted in the article, "A One-Day Ch. 11 Turnaround? Belk Shows It Can Be Done," which was published in Law360 [sub. req.] on March 2, 2021.
The article discusses the rare speed at which southern department store company Belk Inc. recently filed for Chapter 11 and underwent restructuring all in just one day.
Amy explains the factors that motivate companies to move through the filing process as quickly as possible and avoid lingering in bankruptcy: "It's definitely an incentive for an operator like Belk to stay out of bankruptcy as long as possible and put as much time and effort into putting together its restructuring plan without allowing administrative rent to accrue while it's negotiating." She adds that the one-day timeline can be misleading: "Belk appears to be the kind of case that was done with a lot of thought ahead of time. It's not fair to call it a one-day case because the work done ahead of time to make sure it went smoothly was pretty extensive."