Merchant Cash Advances (MCAs): Navigating the Gray Areas

Britt Falabella will be a panelist for a virtual seminar held by the American Bankruptcy Institute. Co-panelists will include: Molly Considine (PPBG Law), Hon. Elizabeth L. Gunn (U.S. Bankruptcy Court, District of Washington), and Hannah White Hutman (Hoover Penrod PLC). This panel will discuss the unique ways different courts are addressing merchant cash advance agreements ("MCAs") under the Code within the context of sales versus loan and chapter 5 actions. In addition, the panel will issue spot novel ways the agreements are getting tested under the Code, including under Section 365, priority issues, tackling the "normal course of business" defense, and applicability of constructive fraud.