Bankruptcy Code

On February 19, 2020, the Small Business Reorganization Act (the “SBRA”) became effective and created a new subchapter V to chapter 11 of the Bankruptcy Code.  As we have reported,…
Continue Reading Subchapter V Eligibility: Congress Fixes CARES Act Provision That Excluded Affiliates of Issuers But Ignores Potential Eligibility for Foreign, Publicly Traded Companies and Affiliates

Today, President Biden signed into law the Bankruptcy Threshold Adjustment and Technical Corrections Act, S. 3823, 117th Cong. (the “Act”), which, among other things, continues the temporary expansion of subchapter…

Continue Reading President Biden Signs Bill Extending Temporary $7.5 Million Subchapter V Debt Limit Increase Into 2024

On March 14, 2022, Senator Chuck Grassley (R-IA) introduced proposed legislation that—if enacted—would make permanent the $7.5 million debt limit applicable to debtors under subchapter V of chapter 11 of…
Continue Reading A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset

“Just enough” is an undeniable—if informal—legal precept.  The concept finds its way into canon from adequacy of pleading to application of equity.  See, e.g., K-Tech Telecommunications, Inc. v. Time …
Continue Reading Courts Analyze the Degree of “Commercial or Business Activity” Necessary for a Liquidating Debtor to be Eligible for Subchapter V Relief