In August 2019, President Donald Trump signed the Small Business Reorganization Act of 2019 (SBRA or “the Act”) into law in an effort to address the fact that small businesses have struggled to reorganize under Chapter 11 of the Bankruptcy Code. 11 U.S.C. §§ 1181-1195 (Subchapter V). The goal of the Act was to make these bankruptcies faster and cheaper for all the parties involved.

With very little press, President Trump signed into law the Family Farmer Relief Act on August 23, 2019 (Public Law no. 116-51). The measure increases the current debt limit used to determine whether a family farmer is eligible for relief under Chapter 12 of the Bankruptcy Code from $4,411,400 to $10,000,000. By lifting this cap, Congress has provided more farmers, who would otherwise be required to file Chapter 11, with the opportunity to qualify for the specialized relief of Chapter 12.

A recent ruling in the bankruptcy case of RMH Franchise Holdings, Inc. (RMH), the second largest franchisee of Applebee’s restaurants with over 160 franchises, highlights the importance of using clear and unequivocal language and action to effectively terminate an agreement before the filing of a bankruptcy. Dine Brands Global Inc. et al. v. RMH Franchise Holdings Inc., et al. (In re RMH Franchise Holdings, Inc., et al.).

Toys “R” Us has offered certain of its landlords an unprecedented payment package in exchange for more time to decide which leases it will keep and which it will dispose of in its chapter 11 bankruptcy case. The package includes payment of “additional rent,” including common-area maintenance, insurance, and real estate tax arrearages under rejected leases, amounts that ordinarily would not be paid in full. The deal may serve as a model for the treatment of landlords in future large retail bankruptcy cases.