By: Annemargaret Connolly and Thomas Goslin , WEIL GOTSHAL & MANGES LLP Introduction Climate change is arguably the most high-profile and rapidly evolving environmental issue facing the global...
By: K. James Sullivan, CALFEE , HALTER & GRISWOLD LLP This article addresses the topic of parametric insurance, a type of insurance that does not indemnify the pure loss, but ex ante agrees to make...
By: John Erskine , NOSSAMAN LLP This article discusses the legal and policy framework for addressing sea level rise (SLR) in the 21st century in the United States, with an emphasis on the California...
By: Steve Gockley , MOYE WHITE LLP Colorado is nationally recognized as one of the leading states in the battle against climate change. As more states and localities consider climate change legislation...
By: The Practical Guidance Real Estate Team This tracker provides an overview of New York climate change legislation that impacts real estate ownership and development. This document tracks legislation...
By: Mark Haut, Practical Guidance
This article provides an update on several developments that have occurred since the Small Business Reorganization Act of 2019 (SBRA) became effective on February 19, 2020. The SBRA created a new bankruptcy option under Chapter 11, known as Subchapter V, which allows small business debtors to address their outstanding liabilities in a fast and efficient, modified Chapter 11 proceeding. The goal of the SBRA is to improve the reorganization process for small business Chapter 11 debtors.
THE SBRA BECAME EFFECTIVE JUST IN TIME TO ASSIST small business debtors in dealing with the COVID-19 pandemic. Since the SBRA effective date, new legislation has been enacted that temporarily amends Subchapter V. These amendments are intended to address the economic effect of the pandemic. This article provides an overview of Subchapter V and a summary of these legislative changes and the new body of case law interpreting Subchapter V.
The SBRA added Subchapter V to Chapter 11 of the Bankruptcy Code. The SBRA does not repeal existing Chapter 11 provisions regarding small business debtors, but instead creates an alternative procedure that small business debtors may elect to use (if eligible). Small business debtors now have the option of filing a Chapter 11 petition and proceeding under Subchapter V. The SBRA’s addition of Subchapter V, among other things, (1) provides for the appointment of a trustee to assist the Subchapter V debtor that remains in possession, (2) requires the debtor to pay its disposable income to unsecured creditors over three to five years, (3) protects secured creditors with the same cramdown protections as in traditional Chapter 11, and (4) allows the debtor to keep its business. CLICK HERE TO READ THE FULL ARTICLE IF YOU ARE A PRACTICAL GUIDANCE SUBSCRIBER