The uncertainty surrounding the COVID-19 pandemic has rocked the
global economy, and companies of all types and sizes are feeling
the impacts. In recent weeks, certain high-profile retailers filed
for Chapter 11 bankruptcy protection. Some airlines are expected to
enter bankruptcy as well, and even farmers are feeling the pinch.
Overall, data suggest that bankruptcies will increase almost 25
percent from last year.
With bankruptcy filings expected to rise, it is important to
remember that environmental liabilities factor into bankruptcy
proceedings. Companies seeking a fresh start may try to discharge
their environmental liabilities through bankruptcy. But this is not
a simple task. Environmental laws are designed to keep responsible
parties on the hook for remediation activities.
