By now, it is evident that the effects of COVID-19 will continue to impact businesses in unforeseeable ways for the foreseeable future. As a result, some businesses may be forced to raise equitable defenses against alleged breaches, including raising defenses rooted in force majeure concepts. Second-level consequences of the global pandemic will also force countless businesses to file for bankruptcy protection. While “unprecedented” may be the most overused word of the pandemic era, until recently, the interplay of force majeure concepts and the Bankruptcy Code was just that—unprecedented.
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This article was originally published in the in COMMUNIQUÉ, the official publication of the Clark County Bar Association (April 2021).
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