Merchant Cash Advances in Bankruptcy

This panel provides an overview of the current treatment of merchant cash advance agreements by bankruptcy courts, as well as practical approaches for debtors and creditors when encountering these agreements.

Learning Objectives:

1. Attendees will understand how to identify MCAs and address their unique impact on commercial bankruptcies.
2. Attendees will examine how bankruptcy courts currently characterize merchant cash advance agreements, including the recharacterization and usury arguments raised in recent case law.
3. Attendees will develop practical strategies for debtors and creditors negotiating, challenging, or enforcing MCA agreements in a bankruptcy proceeding.