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An ‘Affiliate’ of a Public Company Is Barred from Reorganizing Under the Bankruptcy Code’s New Subchapter V

The Small Business Reorganization Act of 2019 (SBRA) aims to simplify and shorten the Bankruptcy Code’s reorganization process for small-business debtors, making Chapter 11 more accessible. Effective as of February 2020,...more

Distressed Investors' Unexpected Tool: Understanding the Small Business Reorganization Act and Changes Related to the CARES Act

In what seems like in the blink of an eye, a once robust economy quickly evaporated, leaving many small businesses with little to no revenue and depleted cash reserves. While many businesses are facing financial distress, the...more

Cramdown Interest Rate Best Set Based on Market Rates

The Bankruptcy Code permits cramdown of a secured creditor but requires that the secured creditor receive deferred cash payments at least equal to the value of its collateral. This means that installment payments to the...more

The Enforceability of Mechanics' Liens in Bankruptcy Is Dependent on State Law

In a recent decision, the Third Circuit Court of Appeals held that a mechanic’s lien filed by an unpaid supplier against a construction project, after the contractor through whom the materials were furnished filed for...more

Debtor’s Founder Ordered to Turn Over Social Media Accounts to Reorganized Company

A recent bankruptcy court decision highlights the importance of Facebook pages, Twitter accounts, and similar social media assets in today’s business marketplace. It’s not always clear how these might be best protected, but...more

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