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Americans have gotten $239 billion — and counting — from the IRS to help them ride out the coronavirus pandemic. Whether households get another round of $1,200 stimulus payments is tied to the increasingly partisan debate over how quickly the economy should reopen, the Wall Street Journal reported. Many Republicans, however, predict a rapid economic recovery as lockdowns end, and they say that government aid to households should now shift to focus more on incentives to work. They say that the stimulus payments provided so far have helped tide Americans over as the economy recovers. “Things are starting to pick up because this bridge to the other side that we built with the stimulus bill appears to be working,” said Kevin Hassett, President Trump’s economic adviser, last week. That view will carry weight as the Republican-controlled Senate considers the $3 trillion coronavirus relief package passed last week by the Democratic-controlled House. That bill, as a whole, is unlikely to become law, but pieces of it may survive. The House package included a second, larger round of payments. Individuals would again get $1,200 from the Internal Revenue Service, but the payment per child would rise to $1,200 from $500. Groups excluded from the first round would get money, including college students, adult dependents, and households with undocumented immigrants where not everyone has a Social Security number. Those payments to people who were initially excluded in the law that passed in late March would be retroactive, adding $23 billion to the original $293 billion size of the first round. Together with larger payments for dependents, the second round of stimulus would be worth $413 billion. “The $1,200 doesn’t go very far over six weeks, so we decided to build a more robust initiative this time around,” said Rep. Richard Neal (D-Mass.), chairman of the House Ways and Means Committee. Many House Democrats, seeing a slow return to normal and a protracted economic downturn, contend it is crucial to get money out again. They see fresh cash injections as a bridge to help families weather an uncertain economic future amid more waves of infections and deaths.

Comcar Industries Inc., a Florida-based trucking company backed by Pimco, has filed for bankruptcy protection with several deals in hand to sell some of its operations, WSJ Pro Bankruptcy reported. Fixed-income investment manager Pacific Investment Management Co. is both a lender to and a shareholder in Comcar, which filed a chapter 11 petition on Sunday in U.S. Bankruptcy Court in Wilmington, Del. The company, which employs about 700 drivers, has struck nearly $20 million worth of deals to sell some of its assets to P&S Transportation, Service Transport Co. and White Willow Holdings LLC. White Willow, an affiliate of investment firm Luminus Management LLC, earlier this year bought Taylor Express Inc. in the bankruptcy of truckload carrier Celadon Group Inc. The Comcar deals must be approved by the court. Comcar had $67 million in assets at the end of March and $86 million in liabilities, of which $65 million was owed to various lenders, Andrew Hinkelman, the company’s chief restructuring officer, said in a court filing. Its debts include about $25 million owed to Pimco under a term loan.

U.S. securities filings show that only three of 12 listed oil and gas companies that received emergency government aid made available for small businesses said they would return it ahead of a deadline for firms that do not need the funds to do so, Reuters reported. The U.S. Treasury Department offered amnesty to public companies that return money they borrowed by May 18, saying it would deem they made the application in good faith due to economic uncertainty fueled by the coronavirus outbreak, before guidelines were clarified. The country’s energy sector has been clamoring for government aid in the wake of plummeting oil prices that have driven several debt-laden exploration and production companies into bankruptcy. While President Donald Trump said last month that his administration would formulate a plan to help the oil and gas industry, no specific aid has been announced. This has left energy companies to seek relief under the broader $2.3 trillion U.S. stimulus package. One aspect of the latter that has been used by oil and gas firms is the so-called Paycheck Protection Program (PPP) for small businesses, providing loans that can be forgiven to cover payroll expenses, as well as mortgage interest, rent and utility costs.

Buried in debt, Eric Brown used to worry that one of his lenders would arrive at his worksite and repossess a piece of heavy machinery he uses to lay utility cables underground. His company, Brown Bros. Telecom & Utility in Dalton, Ga., filed for bankruptcy March 13 after collecting less money than expected on a completed project. But to his surprise, getting a fresh financial start has been easier than he thought, thanks to a new law meant to make the process cheaper and faster while helping owners retain their ownership, the Wall Street Journal reported. “It’s been an absolute game-changer,” said Brown. “And so far, it’s kept me working.” The problems facing Brown’s company predated the economic fallout from the coronavirus pandemic, but attorneys and others who work with small businesses say that the timing will be a big help to companies that have seen their revenue decline amid government-imposed restrictions to slow the spread of the virus. The new rules became law in August last year following bipartisan legislation from congressional lawmakers who relied on recommendations from two legal advisory groups, the National Bankruptcy Conference and the American Bankruptcy Institute. The Small Business Reorganization Act’s changes took effect on Feb. 19, and so far about 350 small businesses are using the new process, according to the U.S. Department of Justice. As part of the rules change, companies must file debt repayment plans more quickly, which is aimed at preventing bankruptcy attorneys from dragging out the process to boost their fees. Small businesses no longer need to pay Justice Department fees or file a formal disclosure statement, a legal document that lawyers charge thousands of dollars to write up. It also gives small-business owners access to a court-appointed financial expert to help fix their problems. The law originally applied to companies with about $2.7 million in debt. In March, Congress raised that limit to $7.5 million for 12 months as part of a sweeping stimulus bill aimed at helping businesses cope with the coronavirus.

Fieldwood Energy LLC, an offshore oil driller that operates in the Gulf of Mexico, is preparing for its second stint in bankruptcy in two years after succumbing to plunging energy demand due to the coronavirus pandemic, WSJ Pro Bankruptcy reported. The company has hired the law firm Weil Gotshal & Manges LLP as well as consulting firm AlixPartners LLP for negotiations with lenders on restructuring its debt. A group of lenders has hired law firm Davis Polk & Wardwell LLP. Fieldwood, a privately held driller based in Houston, recently missed interest payments owed to its lenders, according to ratings firm reports. The company exited bankruptcy protection in 2018 after having raised money from junior lenders to recapitalize the company and pay for the acquisition of Noble Energy Inc.’s assets in the Gulf of Mexico. Fieldwood has roughly $1.8 billion of total debt, according to FactSet.

The owners of restaurants, bars and other establishments in Illinois that open too soon can now be charged with a Class A misdemeanor under a measure enacted by the governor, the New York Times reported. Gov. J.B. Pritzker (D) filed an emergency rule on Friday that his office said was intended to prevent the spread of the coronavirus as a growing number of businesses defy stay-at-home orders across the country. In Illinois, where a stay-at-home order remains in effect through May, a Class A misdemeanor carries a punishment of up to a year in jail and up to a $2,500 fine. The rule also applies to businesses such as barbershops and gyms, according to Pritzker’s office. As of Sunday, 4,177 people had died from Covid-19 in Illinois, according to state health officials, and there have been 94,191 confirmed cases of the virus.

The coronavirus pandemic could cut Puerto Rico’s tax revenue by as much as $2 billion in fiscal year 2020, the commonwealth’s federal oversight board said Wednesday, the latest setback for efforts to restructure the commonwealth’s debt, Bloomberg News reported. Natalie Jaresko, the board’s executive director, said the estimate reflects a projected $20 billion drop in economic activity on the island, which is working its way through a bankruptcy restructuring after amassing some $120 billion in debt and pension obligations. The oversight board — created by the U.S. Congress to help right Puerto Rico’s finances — is scheduled to approve a new fiscal plan by month’s end. For the first time, Jaresko said that the plan would include a set of worst-case scenario projections, reflecting the added uncertainty Puerto Rico is facing. Puerto Rico, a U.S. territory of 3.2 million people, took some of the most dramatic steps of any U.S. jurisdiction to try to stop the spread of the virus, barring cruise ships, closing regional airports and shutting all non-essential businesses on March 16. While manufacturing, construction and some professional service companies have been allowed to reopen with restrictions, much of the economy remains paralyzed. Jaresko praised the local government for taking decisive action but said it has come at a cost. “The states that have been successful in shutting down and containing have a harder time defining how you restart” the economy, she said. “And that’s really the challenge that lies ahead for Puerto Rico.”

Southwest Airlines Co. Chief Executive Officer Gary Kelly said yesterday that the airline industry is not likely to recover to pre-coronavirus levels for at least the next six to 12 months, Reuters reported. The COVID-19 pandemic has brought a virtual halt in air travel, leading to an unprecedented number of flight cancellations globally and forcing airlines to book hefty losses. Southwest last month posted its first quarterly loss in nine years and warned that there was no major improvement in air travel in the second quarter. As the industry grapples with the crisis, Kelly said in a video posted on the airline’s website that the company was offering employees more options to opt-in for leaves as well as voluntary separation packages. About 21 percent of the company’s active workforce is volunteering to take some form of time off or partial pay program, Kelly added.