There can be no doubt that the United States Bankruptcy Courts will be dealing with fall-out from the COVID-19 pandemic for months, if not years, to come. According to the statistics released by the Administrative Office of the U.S. Courts, business bankruptcy filings, which declined over the last year, increased 17% in the month of March 2020.  Since January 2020, the United States Bankruptcy Court for the District of Delaware has seen 57 Chapter 11 cases filed by entities in virtually all business sectors: pharmaceuticals, transportation, health care, manufacturing, energy, the restaurant industry, and retail.

As those familiar with bankruptcy understand, a Chapter 11 bankruptcy case is very different from a stand-alone patent infringement or personal injury lawsuit. Indeed, the umbrella under which Chapter 11 cases proceed is broad enough to accommodate the resolution of discrete lawsuits as related matters, along with the more typical adjudication of claims and the recovery and distribution of estate assets among the various creditors. Consequently, these Chapter 11 cases will likely involve multiple related entities and/or layers of disputes between various creditor groups and be determined pursuant to both legal principles and equitable considerations.

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