The Rise of The Venture Debt Market
The history of success of venture capital (VC) in the United States and Europe continues to attract investors looking beyond the Coronavirus (COVID-19) pandemic, which has upended lives and shifted daily routines on a global scale. A Stanford research study from June 2020 indicated that 42 per cent of the US labour force was working from home full time, with another 33 per cent not working at all owing to lockdown measures. A World Economic Forum report noted that the pandemic has resulted in over 1.2 billion children worldwide being shut out of classrooms.
These changes, as well as a myriad of others that are fundamentally reshaping the world as we know it, are creating a demand for inventive solutions. Even with a vaccine and the departure of the virus from the world stage, many of the shifts from the past few months will remain in place in a post-COVID-19 world. Read More…
French and US Bankruptcy Sales Compared
Timothy W. Walsh
The mechanics for selling a debtor’s business or assets under Section 363 of the US Bankruptcy Code (363) are generally left to the debtor’s business judgment, even though some standard procedures are often employed. For example, an auction process with a stalking horse bidder is common, but not expressly required by the Code.
In contrast, French law provides a precise template for the sale of a business and assets in bankruptcy. Even though it contains some features similar to 363 sales, a French bankruptcy sale has several particularities that reflect the main goal of French bankruptcy law: safeguarding the business in order to protect jobs. Read More…
Out-of-Court Restructuring Alternatives in the European Union, Germany and the United States
Dr. Uwe Goetker
The Coronavirus (COVID-19) pandemic has had a huge impact on the global economy and most businesses. Thousands of companies currently have urgent restructuring needs and every jurisdiction has responded differently. The following is a brief overview of some of the key tools available in the European Union, Germany, and the United States. Read More…
Global Mobility in a COVID-19 World – Key Employment and Tax Considerations
Sandra P. McGill
Carole A. Spink
Coronavirus (COVID-19) is reshaping many aspects of life. Among the more apparent changes are those related to the employment relationship, particularly the expansion of remote work. “Shelter in place” orders early in the pandemic made remote working a necessity for numerous employers. In the months following, employers have learned that some employees travelled to international locations to shelter in place away from their normal work location, or remained in foreign countries even after travel restrictions were lifted, and now intend to stay there.
International remote work raises challenging employment and tax issues for employers. Usually such arrangements are planned in advance, after the careful consideration of legal and tax risks. It is important for employers to fully understand these risks, particularly if employees are requesting an extension of remote work as the pandemic continues. Read More…
The Future of Chinese Investment in Post-Pandemic Europe
Dr. Nikolaus von Jacobs
Tensions between China and the United States continue to escalate. Chinese and US leaders have, at least temporarily, damaged the Sino-US relationship and, in the process, Chinese investors are finding it increasingly difficult to put their money in US markets.
Challenges facing Chinese investors in the United States are widespread. In addition to the review by the Committee on Foreign Investment in the United States, the Trump administration has claimed that certain Chinese companies that appear benign and consumer driven actually present a national security risk. The US Government has also threatened to ban Tiktok, which specialises in video sharing, or, as an alternative, sell its US business to a US company. Read More…
LIBOR: Snapshot of Latest Developments
The deadline for the transition away from the London Inter-Bank Offered Rate (LIBOR) has been extended by the UK Financial Conduct Authority to 30 March 2021. There are still some challenges to overcome. Read More…