Rhode Island Superior Court Presiding Justice Alice B. Gibney has initiated a business protection program in response to disruptions caused by the coronavirus public health crisis. A copy of that administrative order is available here.
Under the COVID-19 Business Recovery Plan, the court will supervise and provide protections for Rhode Island businesses that are intended to allow businesses to remain operational, access new working capital, and pay debts.
The court will use a non-liquidating receivership model, which will help keep the business and its assets intact. The court will appoint receivers to oversee the preparation of an operating plan for businesses in the program.
Once new working capital, such as disaster relief or small business assistance, is obtained, the business will be able to continue operations, address its debts, and begin to generate revenues again.
The Superior Court has also addressed a series of frequently asked questions that businesses can expect to face in seeking protection under the new COVID-19 Business Recovery Plan. That information is available here.
Businesses filing for relief must be represented by legal counsel. If you have any questions regarding the COVID-19 Business Recovery Plan, please contact Attorney Melissa M. Horne at mhorne@hcc-law.com or 401-490-3941.
