This panel will discuss the unique ways different courts are addressing merchant cash advance agreements (MCAs) under the Code within the context of sales versus loans and chapter 5 actions. In addition, the panelists will spot novel ways in which the agreements are getting tested under the Code, including under § 365, priority issues, tackling the “normal course of business” defense and the applicability of constructive fraud.
Learning Objectives:
- Attendees will understand how courts are addressing merchant cash advance agreements under the Bankruptcy Code, including emerging approaches beyond the traditional sale versus loan analysis.
- Attendees will learn the key factors courts consider when determining whether a merchant cash advance constitutes a true sale or a disguised loan.
- Attendees will identify how merchant cash advance agreements are being challenged under chapter 5 and other provisions of the Code, including section 365, priority disputes, the ordinary course of business defense, and constructive fraud.