The New York Times reports that the National Rifle Association ("NRA") filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court in Dallas with plans to reincorporate in Texas. The New York attorney general's office has been conducting an investigation into corruption at the NRA and has been seeking to dissolve the group. The NRA has indicated that its filing is designed to avoid New York's jurisdiction. [N.Y. Times; Jan 15, 2021]

Fortune reports that the boost in U.S. spending and borrowing designed to combat the ravages of the pandemic has resulted in the U.S. debt reaching levels that rival Italy's. The percentage of U.S. borrowing to GDP reached 134% in 2020, which is a jump from under 109% in 2019. The new stimulus package and other promised aid may add another $3 trillion to the deficit, which would raise the debt-to-GDP ratio to around 150% in 2021, a figure close to Italy's 152%. [Fortune; Jan. 14, 2021]

According to Bloomberg's U.S. bankruptcy tracker, there have been four large bankruptcy filings so far in 2021, a relative slowdown from six filings during the corresponding period of 2020. The total amount of traded distressed bonds and loans also shrank to about $146 billion as of Jan. 8, 2021, significantly less than the $935 billion peak in March, 2020. [Bloomberg; Jan. 12, 2021]

The Wall Street Journal discusses how commercial landlords are reluctantly granting rent concessions and other relief to retail tenants in light of the rise in retail vacancies. Landlords that cannot quickly replace tenants have little leverage in lease negotiations, as they are worried that further tenant departures could trigger more severe financial consequences under their debt documents. [WSJ; Jan. 11, 2021]

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.