Foley Partner Gregory Monday authored an article that appeared in the Summer 2010 issue of Family Business titled “Structuring shareholder loans to reduce risks in bankruptcy.” Monday discusses how family businesses can structure insider loans according to 11 key factors so that a bankruptcy court may not re-characterize them as capital contributions. He states that the loans should be recoverable to a much greater extent than capital contributions if the company were to be liquidated in bankruptcy, but adds that the court’s power to re-characterize loans is still developing and could be changed by the Supreme Court or Congress.
Related Insights
10 October 2024
Viewpoints
Proposed Rule Targeting Connected Vehicles Will Impose Major New Supply Chain Compliance Requirements on Automotive Companies that Source from Russia or China
On September 26, 2024, the Department of Commerce’s Bureau of Industry and Security (BIS) published a Notice of Proposed Rulemaking that, if finalized, would prohibit the sale or import of certain automotive hardware and software, as well as “connected vehicles” incorporating this technology, from or linked to the People’s Republic of China or Russia.
11 October 2024
Events
Managing Risk and Driving Resilience | Cybersecurity Summit 2024
On Friday, October 11, Foley Partner Jen Urban will speak on the panel titled, “Managing Risk and Driving Resilience.”
10 October 2024
Manufacturing Industry Advisor
Stellantis Files String of Lawsuits Against UAW Claiming Strike Threats Are Bad Faith
On October 7, 2024, in a coordinated attack, Chrysler owner Stellantis filed a string of lawsuits across multiple jurisdictions against the United Auto Workers Union (“UAW”) and numerous local chapters regarding the UAW’s threats to strike if Stellantis does not move forward with planned investments in its U.S. operations.