ECJ Partner Byron Moldo Quoted In The Southern California Record
Byron Z. Moldo, Partner and head of ECJ's Bankruptcy, Receivership and Creditors’ Rights Department was recently quoted in the Southern California Record. The article titled, "Bankruptcy attorneys prepare for an onslaught of filings post COVID-19, but there are alternatives", discusses the uncertainty surrounding the COVID-19 outbreak and businesses exploring bankruptcy due to pandemic related struggles.
The article discusses state alternatives to federal bankruptcy petitions. State of California alternatives include forbearance, assignment for the benefit of creditors "ABC" and state court insolvency proceedings. According to Byron, receivership is a "drastic remedy" but more flexible than bankruptcy proceedings since state statues are followed instead of bankruptcy code. He also stated that "a receivership typically happens when there's fraud, mismanagement or assets transferred".
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