What We’re Reading This Week [March 23, 2020]

Goldman Sachs published a research report suggesting that recently implemented social distancing measures will result in declines in services consumption, manufacturing activity, and building investment that will lower the level of GDP in April by nearly 10%. [Goldman Sachs; Mar. 20, 2020]

The Eight Circuit Court of Appeals Bankruptcy Appellate Panel recently released its decision in Bank of Missouri v. Family Pharmacy, Inc. et al., which determined that an oversecured creditor “has an unqualified right to post-petition interest under 506(b), and that interest should be computed at the rate — default as well as non-default — provided in the parties’ agreement, as long as those rates are allowed under state law.” [8th Cir.; Mar. 19, 2020]

The Wall Street Journal reports that the International Air Transport Association is estimating that a $200 billion bailout will be required to avoid mass bankruptcies by global airlines. [WSJ; Mar. 18, 2020]

The National Law review recently published a primer on the intersection of COVID-19 coronavirus and its potential effects on global corporate debt that is at risk of default. Per the article, the IMF determined in 2019 that approximately $19 trillion of the approximately $51 trillion in global corporate debt was a risk of default during the next global economic downturn. [Nat’l L. Rev.; Mar. 17, 2020]