On June 21, 2022, President Biden signed the Bankruptcy Threshold Adjustment and Technical Corrections Act into law. As we reported here, the Bankruptcy Corrections Act.
The Bankruptcy Corrections Act revived the $7.5 million eligibility threshold for accessing the restructuring process in Subchapter V of Chapter 11 and clarifies that subsidiaries may be eligible for Subchapter V, effectively abrogating caselaw holdings to the contrary.
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,.
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.