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.