The Small Business Reorganization Act of 2019: New Chapter 11 Procedures for Small Business Bankruptcies

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, January 9, 2020

Recorded event now available

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Program Materials

This CLE webinar will examine Small Business Reorganization Act of 2019 (SBRA) and its ramifications for small businesses under Chapter 11. The panel discussion will include what constitutes a "small business debtor" under the new statute, and the streamlined reorganization procedures outlined in the new Subchapter V created under SBRA.

Description

The new SBRA, signed into law on Aug. 23, 2019, and effective Feb. 19, 2020, represents a substantial change in bankruptcy law and practice for small business debtors. Bankruptcy counsel will need a thorough understanding of the new Subchapter V and the options available to debtors that qualify for small business treatment.

Subchapter V is available to debtors engaged in commercial business activities, excluding the ownership of single asset real estate, who have secured and unsecured debts less than $2,725,625 (subject to adjustment for inflation after April 1, 2021). To proceed under Subchapter V, the small business debtor must make an election. Otherwise, the small business debtor's bankruptcy will continue as a "small business case" under Subchapters I through III of Chapter 11.

Subchapter V offers a more straightforward and cheaper path to reorganization and does not require a creditors' committee or disclosure statement except by court order for cause. Also, U.S. trustee fees are not incurred. Most importantly, the absolute priority rule has been eliminated, and thus, a creditors' ability to block confirmation is significantly weakened.

Listen as our authoritative panel highlights the changes to bankruptcy practice resulting from SBRA concerning small business reorganizations under Chapter 11.

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Outline

  1. Definition of a small business debtor
  2. Appointment and role of trustee
  3. Powers and duties of the debtor in possession
  4. Creditors committee
  5. Property of the estate
  6. Filing of plan and solicitation
  7. Confirmation of plan
  8. Modification of plan
  9. Discharge
  10. Proposed bankruptcy rules
  11. Amendments to preference provisions

Benefits

The panel will review these and other critical issues:

  • What issues in small business reorganizations under Chapter 11 does SBRA attempt to address?
  • What are the features of new Subchapter V that streamline the reorganization process for a small business debtor?
  • What are the new procedures in a Subchapter V case?
  • What payments are required in a Subchapter V plan?
  • What are the changes in modifying a Subchapter V plan?
  • When does the debtor get a discharge in a Subchapter V case?

Faculty

Kucera, Jeffrey
Jeffrey T. Kucera

Partner
K&L Gates

Mr. Kucera helps clients to enforce, interpret, restructure, and renegotiate lending arrangements. He is a litigator...  |  Read More

Norton, William
William L. Norton, III

Partner
Bradley

Mr. Norton focuses his practice in the business bankruptcy area, dealing in all aspects of bankruptcy cases, creditor...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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48 hours after event

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48 hours after event

$297