In 2019 the large business bankruptcy landscape was generally shaped by economic, market and leverage factors, with notable exceptions for disastrous wildfires, liabilities arising from the opioid crisis, price-fixing fallout and corporate restructuring shenanigans. The year 2020 was a different story altogether. The COVID-19 pandemic may not have been responsible for every reversal of corporate fortune, but it weighed heavily on the scale.
The ability of a bankruptcy trustee or a Chapter 11 debtor in possession to use cash collateral during the course of a bankruptcy case may be vital to the debtor's prospects for a successful reorganisation. However, because of the unique nature of cash collateral, the Bankruptcy Code sets out special rules that apply to the non-consensual use of such collateral to protect the interests of the secured creditor involved.