The Rhode Island Superior Court will start a business protection program in response to disruptions caused by COVID-19 (a copy of the Administrative Order is available here). Under the business recovery plan, the court will supervise and provide protections for Rhode Island businesses so they can remain operational, access new working capital and pay debts. The court will use a non-liquidating receivership model, which will keep the business and its assets intact. The Court will appoint a receiver to oversee the preparation of an operating plan for businesses in the program. Once new working capital, such as disaster relief or small business assistance, is accessed by the business, they will be able to maintain operations, address their debts and begin to generate revenues again.
The COVID-19 pandemic is disrupting, and in some cases, forcing businesses to close, negatively impacting the state’s economy. Businesses that were not in default on their debts prior to the pandemic are eligible to file a petition with the Superior Court and will be assigned to the Business Calendar.
Since the pandemic’s impact on businesses became evident, the Superior Court began working on procedures for filing petitions electronically and conducting hearings through the court’s Webex online meeting system. To determine eligibility for the Business Recovery Plan, businesses should review the materials by following the Business Recovery Plan link at courts.ri.gov, or contact their attorney.