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A Cogent Opposing View on SBRA Flexibility

PBWT

I don’t know if Congress foresaw, when it enacted new Subchapter V of Chapter 11 of the Code [1] in the Small Business Reorganization Act of 2019 (“SBRA”), that debtors in pending cases would seek to convert or redesignate their cases as Subchapter V cases when SBRA became effective on February 19, 2020, but it was foreseeable.

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Redesignation to Elect SBRA Is On a Roll

PBWT

Our February 26 post [1] reported on the first case dealing with the question whether a debtor in a pending Chapter 11 case may redesignate it as a case under Subchapter V, [2] the new subchapter of Chapter 11 adopted by the Small Business Reorganization Act of 2019 (“SBRA”), which became effective on February 19. [3] 894 (Bankr.

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You Can Come In, But You Can’t Stay – Judge Grossman Dismisses Debtor’s Case for Re-designating Under the SBRA After Deadlines Have Passed. Seven Stars on the Hudson Corp., Case No. 19-17544-SMG, Bankr. S.D. Fla. Aug. 7, 2020

Burr Forman

The Small Business Reorganization Act of 2019 (the “SBRA”) was enacted on August 23, 2019, with an effective date of February 19, 2020. [4] 4] The SBRA created a new Subchapter V of the Bankruptcy Code to “streamline the bankruptcy process by which small business debtors reorganize and rehabilitate their financial affairs.” [5]

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Recent Amendments Place Creditors in a Stronger Position to Defend Against Chapter 11 Bankruptcy Preference Lawsuits

Fraser

The “Small Business Reorganization Act of 2019” (SBRA), which went into effect in February, 2020, contains amendments to Chapter 11 bankruptcy preference law that are not limited to small business reorganizations. The SBRA places an additional hurdle in front of debtors. The SBRA raises this threshold amount to $25,000.

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Graham Stieglitz Discusses Subchapter V Bankruptcy Process for Full-Service Restaurant

Burr Forman

As these restaurants seek remedies to get their businesses on the right track, Graham Stieglitz authored a December 2020 article for Full-Service Restaurant Magazine (FSR) discussing efficient restructuring processes available to qualifying businesses under the Small Business Reorganization Act (SBRA).

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Controversy Over SBRA’s Retroactivity

PBWT

In In re Double H Transportation LLC , [4] Bankruptcy Judge Christopher Mott held that such an amendment was not permitted by SBRA. “Nothing in the SBRA enabling statute indicates that the SBRA was intended to have retroactive effect–i.e., that the SBRA should apply to pending bankruptcy cases.”

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Subchapter V Conversion for Existing Chapter 11 Debtors

ABI

Congress passed the Small Business Reorganization Act of 2019 (“SBRA”) to give small businesses a better chance to successfully reorganize under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”). [1] 11] However, the SBRA went into effect before the confirmation hearing. [12] By: Eric Silverstein. 14] The U.S.

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