News & Analysis as of

Small Business Small Business Reorganization Act of 2019 (SBRA) Creditors

Levenfeld Pearlstein, LLC

Congress Considers Another Extension to the Subchapter V $7.5 Million Debt Limit

On February 19, 2020, Congress enacted the Small Business Reorganization Act (“SBRA”) to, among other things, streamline the chapter 11 bankruptcy process for a small business by creating subchapter V of the Bankruptcy Code....more

Patterson Belknap Webb & Tyler LLP

Popularity of Subchapter V Bankruptcy Filings

In 2019, Congress enacted the Small Business Reorganization Act, which created subchapter V within chapter 11 of the Bankruptcy Code. Congress’ intent was to create a more cost-efficient and streamlined restructuring process...more

Nelson Mullins Riley & Scarborough LLP

Subchapter V—Fourth Circuit Rules Not a Panacea for the Dishonest Debtor

In 2019, Congress enacted the Small Business Reorganization Act. This legislation created a new type of Chapter 11 reorganization under which certain businesses with total debts less than a certain threshold (currently $7.5...more

Kelley Drye & Warren LLP

Subchapter V Changed The Chapter 11 Bankruptcy Landscape – How Should A Creditor Protect Itself?

Subchapter V was intended to be the faster, easier, and cheaper version of Chapter 11 bankruptcy, allowing small “Main Street” businesses to reorganize like mid-size and large companies. After participating in Subchapter V...more

Epiq

The Future of Subchapter V: Navigating the Pandemic and Beyond

Epiq on

Bankruptcy courts have had an increase in activity since the COVID-19 pandemic struck, especially for small businesses facing financial challenges. The Small Business Reorganization Act (SBRA), which was passed in August 2019...more

Goodwin

A New Bankruptcy Lifeline for Startup, Early Stage and Emerging Growth Companies?

Goodwin on

Top 10 Questions About Subchapter V Reorganization - Reorganization under Chapter 11 of the Bankruptcy Code offers powers and benefits that are simply not available in out-of-court restructurings. Chapter 11...more

Obermayer Rebmann Maxwell & Hippel LLP

Big Changes to Small Business Bankruptcies: Timely Amendments to The Bankruptcy Code Throw A Lifeline to Small Businesses...

The Small Business Reorganization Act (“SBRA”), which became effective February 19, 2020 after being signed into law in August 2019, created a new Subchapter V of Chapter 11 of the Bankruptcy Code with a stated purpose “to...more

Burr & Forman

You Can Come In, But You Can’t Stay – Judge Grossman Dismisses Debtor’s Case for Re-designating Under the SBRA After Deadlines...

Burr & Forman on

“Timing in Life Is Everything” – John Sculley - Relying on a plain reading of Sections 1188 and 1189 of the Bankruptcy Code, Bankruptcy Judge Scott M. Grossman dismissed the Seven Stars bankruptcy case based on the debtor’s...more

Robinson & Cole LLP

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

Robinson & Cole LLP on

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

Sands Anderson PC

The New Small Business Reorganization Act Comes with New Forms and Rules

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Congress recently enacted the Small Business Reorganization Act of 2019 (the “SBRA”), which created Subchapter V of the Bankruptcy Code, and became effective on February 19, 2020. The SBRA was enacted to expedite and reduce...more

Cole Schotz

COVID-19 Legislation Makes Reorganization Quicker And Less Expensive For Small Business Debtors

Cole Schotz on

Chapter 11 for the Smaller Guys. Until very recently, filing for Chapter 11 reorganization was a tool for larger businesses since the process is expensive and time consuming while the Debtor corporation seeks to negotiate...more

Rivkin Radler LLP

Put Your Business on Solid Financial Footing before Hitting ‘Unpause’

Rivkin Radler LLP on

Due to the COVID-19 pandemic and resulting economic shutdown, we have counseled our clients about how they can protect their rights as creditors once the economy begins to ramp up again. We have also advised them on how to...more

Haynsworth Sinkler Boyd, P.A.

Small Business Bankruptcies: New Beginnings In The Midst Of COVID-19

As businesses of all sizes braces for the impact of COVID-19 over the next several months, and possibly years, the rise of bankruptcy filings is inevitable. The impact on small businesses in particular is likely to be...more

Robins Kaplan LLP

Can Corporate Bankruptcy Help Your Small Business? Expansion Of The Small Business Reorganization Act

Robins Kaplan LLP on

In the wake of the COVID-19 pandemic, the country’s small businesses have suffered systemic and catastrophic disruption to operations, demand and supply that will make it impossible for many such businesses to fulfill their...more

A&O Shearman

The Liquidity Crunch

A&O Shearman on

The global economy has been greatly impacted by the COVID-19 pandemic and a significant drop in oil prices. The combination of these two factors coupled with the uncertainty surrounding the length of time COVID-19 will hold a...more

Nelson Mullins Riley & Scarborough LLP

CARES Act Makes Small Business Bankruptcy More Accessible

Companies with Debt Up to $7,500,000 Now Eligible for Relief - The primary purpose of the new CARES Act is to provide emergency financial and health care assistance to individuals, families, and businesses that are...more

Dickinson Wright

A Realistic Survival Option For Small Businesses – Relief Under The Small Business Reorganization Act

Dickinson Wright on

No one can yet predict the overall effect the COVID-19 pandemic will have on the economy in the long run. However, the immediate impact on small businesses seems readily apparent. The dramatic disruption has impeded cash...more

Baker Donelson

CARES Act Expands the Small Business Reorganization Act – Lenders Beware

Baker Donelson on

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) expands a new law that streamlines the Chapter 11 bankruptcy process for small businesses to include a larger group of small businesses. The Small Business...more

ArentFox Schiff

COVID-19 Stimulus Legislation Aims to Make Chapter 11 Easier for Many More Small Businesses

ArentFox Schiff on

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a Senate bill passed just days earlier in response to the public health crisis that has emerged from the...more

Snell & Wilmer

New Small Business Reorganization Act May Provide Easier Bankruptcy Relief for Many Small Businesses Impacted by COVID-19

Snell & Wilmer on

By happenstance, on February 19, 2020, soon after the first case of the COVID-19 virus (the “Virus”) was confirmed in the United States, the Small Business Reorganization Act (“SBRA”) became available as a form of debt...more

White and Williams LLP

New Subchapter V May be the Bankruptcy Lifeline Small Businesses Need to Survive COVID-19

White and Williams LLP on

When the Small Business Reorganization Act (SBRA) was signed into law in August 2019 and slated to take effect in February 2020, no one could have foreseen that, by March 2020, the U.S. economy would grind to a halt as a...more

Pullman & Comley, LLC

New Small Business Reorganization Act Makes It Easier For Small Businesses To Reorganize

Pullman & Comley, LLC on

Chapter 11 can be a daunting and expensive process for any business to undertake, but its myriad requirements tend to have a disproportionate effect on small businesses....more

Rumberger | Kirk

Small Business Bankruptcy Reforms You Need to Know

Rumberger | Kirk on

For many years, people associated with the bankruptcy system in the United States recognized the process didn’t work well for small business owners. Corporate reorganizations through the Chapter 11 process were cumbersome and...more

Lowndes

Major Change for Bankruptcy Preference Defendants Tucked into New Small Business Chapter 11 Law

Lowndes on

On August 23, 2019, the President signed the “Small Business Reorganization Act,” which changed the Bankruptcy Code and goes into effect on February 19, 2020....more

Lowndes

Big Changes for Small Business Coming to Chapter 11 Bankruptcy

Lowndes on

In the coming weeks, the Small Business Reorganization Act (the “SBRA”) will go into effect. As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005—the most significant large-scale change to the...more

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