STORY FROM: COVID-19 Litigation Report

Ch. 11 Small Business Denied Preliminary Injunction to Seek PPP Funds

GREENBELT, Md. — A Maryland federal bankruptcy court has refused to issue a preliminary injunction that would allow a small business in the midst of Chapter 11 bankruptcy proceedings to seek a Paycheck Protection Program loan, finding it would contravene 4th Circuit precedent.

However, in the June 8 order, the U.S. Bankruptcy Court for the District of Maryland dismissed the bankruptcy case, so as to allow the business to seek PPP funds.

Chapter 11 debtor iThrive Health LLC d/b/a Village Green Apothecary sought a preliminary injunction against Jovita Carranza, as Administrator for the United States Small Business Administration, accusing her ...

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