December 10, 2020

Subchapter V Trustees Are Entitled to ‘Reasonable’ Compensation Without a “Cap”

Section 326(b) could have been (incorrectly) read to mean that non-standing subchapter V trustees are not entitled to compensation.

9th Circuit, Idaho

November 13, 2020

An ‘Affiliate’ of a Public Company Is Barred from Reorganizing Under Subchapter V

To measure eligibility for subchapter V, the debtor must not be an affiliate of a public company that has 20% or more of the ‘voting securities.’

11th Circuit, Georgia, Georgia Northern District

October 27, 2020

Texas Mineral Liens May Be Modified in a Subchapter V Cramdown Plan

A cramdown plan can reduce the collateral coverage for secured creditors.

5th Circuit, Texas, Texas Southern District

October 21, 2020

‘Disposable Income’ Must Be Carefully Defined to Preserve the Debtor’s Discharge

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

9th Circuit, California, California Eastern District

August 13, 2020

Florida Judge Bars Redesignation Under the SBRA When Deadlines Have Already Lapsed

With deadlines already elapsed, Judge Grossman disagrees with three judges who allowed redesignation under subchapter V of chapter 11.

11th Circuit, Florida, Florida Southern District

July 24, 2020

Increasingly Popular SBRA Permits Restructuring Personal Guarantees of Corporate Debt

More than 600 cases have already been filed under the SBRA since subchapter V of chapter 11 became effective in February.

5th Circuit, Louisiana, Louisiana Eastern District

July 13, 2020

Three Judges Permit Redesignation under the SBRA, But with Qualifications

The SBRA can be used to extinguish a creditors’ committee previously appointed in a ‘traditional’ chapter 11 case.

4th Circuit, Maryland

July 07, 2020

Subchapter V Isn’t Always an Antidote for a Failing Chapter 11 Reorganization

Misconduct in the prior chapter 11 case barred debtors from proceeding as a small business reorganization under subchapter V of chapter 11.

10th Circuit, Oklahoma, Oklahoma Western District

June 29, 2020

Government Notches 4 Victories, Debtors Win Once, in Fights over PPP ‘Loans’

Government often wins by arguing that the Small Business Act prohibits injunctions forcing the SBA to consider granting ‘PPP’ loans without regard to whether the applicant is a chapter 11 debtor.

5th Circuit

June 24, 2020

Fifth Circuit Bars Debtors from Receiving ‘PPP’ Loans Under the CARES Act

In a rapid-fire appeal, the Fifth Circuit ruled that the Small Business Act bars bankruptcy courts from enjoining the SBA.

5th Circuit