News & Analysis as of

Reorganizations Small Business

Bowditch & Dewey

Ten Reasons to Expect an Increase in Financial Restructurings in 2025

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1. Commercial Chapter 11 Bankruptcy Filings Have Increased Significantly Year-Over-Year: There has been a significant increase in the number of commercial Chapter 11 cases (larger company filings) in 2024. By way of example,...more

Locke Lord LLP

Too Much of a Good Thing: Congress Allows Increased Subchapter 5 Eligibility Level to Expire

Locke Lord LLP on

Over the past few years, one of the universally celebrated success stories in the bankruptcy and restructuring world has been Subchapter V of the Bankruptcy Code. Created by the Small Business Reorganization Act of 2019 (the...more

Nelson Mullins Riley & Scarborough LLP

ABI’s Subchapter V Task Force Releases Final Report on Subchapter V Recommendations

Congress enacted the Small Business Reorganization Act of 2019 (“SBRA”) on August 23, 2019, to facilitate the reorganization of smaller business debtors in the United States. The SBRA, codified as Subchapter V of Chapter 11...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

Pillsbury Winthrop Shaw Pittman LLP

Conflicting Court Rulings on Subchapter V Eligibility Leave Small Businesses in Limbo

Two recent bankruptcy court decisions reflect a split of authority on subchapter V eligibility. In re Macedon Consulting Inc. finds that all future amounts due under an unexpired lease qualify as “noncontingent and...more

Brownstein Hyatt Farber Schreck

A Possible, But Narrow, Path for Cannabis in Bankruptcy Court

A recent U.S. bankruptcy court opinion out of the Central District of California may have cracked the door open for companies formerly tied to the cannabis industry to pursue legal strategies using bankruptcy. Federal...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

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

Ward and Smith, P.A.

Congress Extends Higher Debt Ceiling for Small Business Bankruptcies

Ward and Smith, P.A. on

We previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may be able to take advantage of Subchapter V of Chapter 11 of the Bankruptcy Code. The new...more

Tonkon Torp LLP

Chapter 11 Bankruptcy: The Ultimate Corporate Finance Tool

Tonkon Torp LLP on

COVID-19 ushered in a volatile economic climate that has made it difficult for many companies to meet their debt obligations. These companies may soon face a lender demanding repayment of debt that the company cannot pay....more

Cozen O'Connor

COVID Cash Crunch: Options for Reorganizing or Winding Down Your Company in Illinois

Cozen O'Connor on

The financial distress caused by the COVID-19 pandemic has left many companies reeling. With no clear end in sight, the bad news is that some businesses will be forced to pursue options for winding down or reorganizing....more

Ward and Smith, P.A.

Can a Business Owner Reorganize Guaranty Obligations Under Subchapter V?

Ward and Smith, P.A. on

We have previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may be able to take advantage of Subchapter V of Chapter 11 of the Bankruptcy Code. The new...more

Bradley Arant Boult Cummings LLP

The Pros and Cons of the Small Business Reorganization Act of 2019

Effective February 19, 2020, Congress enacted new bankruptcy legislation granting debtors the option to elect a new subchapter V of chapter 11 of the bankruptcy code (Subchapter V). This was made possible by the bipartisan...more

Davis Wright Tremaine LLP

Small Business Reorganization Act

The Small Business Reorganization Act, which came into effect in February 2020, significantly changes the bankruptcy process for small businesses....more

Ward and Smith, P.A.

Controlling Expenses in Small Business Chapter 11 Cases

Ward and Smith, P.A. on

We previously informed you that if you are a small business that needed to file bankruptcy to save your company, you may be able to take advantage of Subchapter V of Chapter 11 of the Bankruptcy Code. Subchapter V was part...more

Schwabe, Williamson & Wyatt PC

Chapter 11 Bankruptcy is Expensive; the Small Business Reorganization Act Provides a Realistic Opportunity for Small Businesses to...

Many commentators have long complained and many companies have experienced the reality that bankruptcy laws are too complex, costly, and onerous to successfully allow small businesses to survive by reorganizing in bankruptcy....more

Spilman Thomas & Battle, PLLC

Subchapter V and the Single Asset Real Estate Debtor in a COVID-19 World

Over a year ago, Congress amended the Bankruptcy Code to create Subchapter V, with the intent of encouraging small businesses (defined as those with less than $2,725,625.00 in debt) to file reorganization plans more often by...more

Sands Anderson PC

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

Sands Anderson PC on

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

Rosenberg Martin Greenberg LLP

A Look At The First Three Months Of The Small Business Reorganization Act

In August of 2019, the President signed into law the Small Business Reorganization Act (“SBRA”).  SBRA created a new Subchapter V of Chapter 11 of the United States Bankruptcy Code effective February 19, 2020.  SBRA is...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

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

Bradley Arant Boult Cummings LLP

Congress Expands Small Business Bankruptcy Relief in Historic Coronavirus Aid Bill

Small businesses often struggle to reorganize in bankruptcy. To address this issue, Congress passed the Small Business Reorganization Act of 2019. The act took effect in February 2020 and makes small business bankruptcies...more

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