A recent decision highlighted a flaw in the Bankruptcy Code. Will the House of Representatives pass the Bankruptcy Threshold Adjustment and Technical Corrections Act to correct it?

On April 28, 2022, Central District of California Bankruptcy Judge Ernest M. Robles issued a decision regarding the eligibility of a debtor to proceed as a Small Business Debtor under Subchapter V of the Bankruptcy Code.

Filed under:
USA, Insolvency & Restructuring, Litigation, Thompson Coburn LLP, Bankruptcy, Coronavirus, US Congress, CARES Act 2020 (USA)
Authors:
Joseph Orbach , Mark Power
Location:
USA
Firm:
Thompson Coburn LLP
Not so Technical: A Flaw in the CARES Act’s Correction to “Small Business Debtor”

The Small Business Reorganization Act of 2019 (SBRA) added subchapter V to chapter 11. In defining the eligibility for subchapter V, Congress amended the Bankruptcy Code’s definition of a “small business debtor” to exclude specifically corporations that are subject to the reporting requirements under the Securities Exchange Act of 1934, essentially making publicly traded companies ineligible for subchapter V.

Filed under:
USA, Capital Markets, Insolvency & Restructuring, Thompson Coburn LLP, Coronavirus, US Securities and Exchange Commission, US Congress, CARES Act 2020 (USA)
Authors:
Christine Joh , Joseph Orbach , Mark Power
Location:
USA
Firm:
Thompson Coburn LLP