AB Stable VIII LLC v MAPS Hotels And Resorts One LLC

Intro

The COVID-19 pandemic fundamentally reshaped the M&A landscape. Suddenly, important concepts in the field were turned on their head – particularly what we mean when we say "Ordinary Course of Business". In an era where nothing could be described as "ordinary" and businesses were forced to rapidly come to grips with changing government protocols, losses of business, and extended absences by key employees, determining what constitutes behavior within the ordinary course of business for the purposes of complying with transaction covenants became incredibly difficult. The Delaware Supreme Court has recently tackled the issue of violations of ordinary course covenants due to the COVID-19 pandemic directly.