In the wake of the ongoing coronavirus (COVID-19) pandemic, many companies may now be perceived as extremely attractive targets, even “sitting ducks,” for activist investors. We will discuss several timely topics top-of-mind for companies concerned with being in the crosshairs of an activist investor, including recent trends in shareholder activism, how COVID-19 has made many companies more vulnerable to activist investors, how the playbook of activist investors may need to evolve in the wake of COVID-19, and what steps companies can take now to avoid being “sitting ducks” for activist investors.
Contacts:
Keith E. Gottfried
,
Sean M. Donahue
The US Department of Health and Human Services (HHS) issued two welcome announcements on October 22 relating to the CARES Act Relief Fund Provider Relief Fund (PRF). First, the agency expanded the pool of eligible recipients to “include provider applicants such as residential treatment facilities, chiropractors, and eye and vision providers that have not yet received Provider Relief Fund distributions.”
Contacts:
Howard J. Young
,
Gregory N. Etzel
The Internal Revenue Service (IRS) has issued Revenue Procedure 2020-44 (the Revenue Procedure) providing interim guidance for taxpayers moving away from Interbank Offered Rates (IBORs) to fallback provisions issued by the Alternative Reference Rates Committee (ARRC) or the International Swaps and Derivatives Association (ISDA). Here is why the guidance, though fairly constrained, is welcome news for several reasons.
Contacts:
Charles R. Bogle
,
Sarah A. Nelson
,
Jeffrey Funston
Micro and small companies will be able to use a “Simplified Insolvency Programme” to be introduced by proposed amendments to Singapore’s Insolvency, Restructuring, and Dissolution Act 2018 (IRDA).
Contacts:
Guan Feng Chen
,
Sin Teck Lim
,
Jonathan Tang
Economic turmoil as a result of political instability and from the coronavirus (COVID-19) pandemic, together with unallocated capital and low interest rates, means that non-core, but potentially profitable, operations or underperforming distressed assets are increasingly available across Europe. Countries across the region have also adapted insolvency laws to facilitate transactions and support economic activity. This first edition of our Sovereign Wealth Funds Update discusses the prevailing conditions, with particular reference to the United Kingdom, France, and Germany, including key considerations for sovereign wealth funds seeking to engage in distressed M&A transactions.
Contacts:
Mark Geday
,
Joanna Christoforou
,
Stephen Walters
,
Allison Soilihi
,
Torsten Schwarze
Partners Charles Horn and Donald Waack, of counsel Eamonn Moran, and associate Sarah Riddell authored a Law360 article about the interpretive letter issued by the US Office of the Comptroller of the Currency on September 21 clarifying that national banks and FSAs are authorized to hold stablecoin reserve. In the piece, they discussed the compliance considerations and key takeaways for companies.
Contacts:
Charles M. Horn
,
Donald S. Waack
,
Eamonn K. Moran
,
Sarah V. Riddell
Morgan Lewis partners Matthew Schernecke and Kristen Campana authored a Bloomberg Law article about the concessions lenders have made in exchange for additional credit support, capital contributed, and/or additional covenants amid the coronavirus (COVID-19) pandemic.
Contacts:
Matthew Edward Schernecke
,
Kristen V. Campana
The US Department of the Treasury and the Internal Revenue Service have issued guidance with respect to US President Donald Trump’s August 8, 2020 Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster. The notice allows an employer to opt to postpone the withholding and depositing of certain employer-share Social Security taxes until repayment is required in 2021; it does not waive liability for the underlying taxes.
Contacts:
Mary B. Hevener
,
Steven P. Johnson
,
Jonathan Zimmerman
,
Anna M. Pomykala
Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit to the Consumer Financial Protection Bureau (CFPB or Bureau) certain data on applications for credit for women-owned, minority-owned, and small businesses.
Contacts:
Eamonn K. Moran
,
David I. Monteiro
,
Robin Nunn
,
Nicholas M. Gess
