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How Businesses Use Corporate Debt Restructuring for Liquidity

Debt RR

Businesses restructuring debt typically do so because they’re having trouble meeting obligations, and it goes both ways. Many businesses are both debtors and creditors. That’s why it behooves everyone to understand debt restructuring. This is a good guide for distressed businesses to use when negotiating debt obligations.

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JUST IN TIME: NEW BANKRUPTCY RELIEF FOR SMALL BUSINESSES – NEW YORK LAW JOURNAL

Collection Industry News

The CARES Act special bankruptcy relief increased the debt limit under the Small Business Reorganization Act of 2019 (SBRA) from about $2.7 The increased debt limit, which became effective February 20, 2020, includes a one-year sunset. First, the total amount of secured plus unsecured debt may not exceed $7.5