March 18, 2022

Second Circuit Holds that Debtors Are Properly Barred from Receiving PPP Loans

The first court of appeals to reach the issue decides that the SBA properly interpreted the CARES Act to bar chapter 11 debtors from receiving PPP ‘loans.’

2nd Circuit

February 17, 2022

Ordinary Excuses Won’t Justify Plan-Filing Delays in Subchapter V

A fight between creditors justifies granting a Subchapter V debtor more time to file a plan, Judge Lane says.

2nd Circuit, New York, New York Southern District

December 21, 2021

Owner of a Long-Defunct Business Didn’t Qualify for Subchapter V

Being an ordinary employee didn’t mean that the debtor was engaged in business to qualify for Subchapter V.

3rd Circuit, Pennsylvania, Pennsylvania Western District

November 02, 2021

To Count in Subchapter V, Loans Need Not Benefit Only the Small Business Debtor

If a loan benefits both a debtor and someone else, the loan still may be included in counting whether the debt “arose from the commercial or business activities of the debtor.”

4th Circuit, Maryland

November 01, 2021

Debtors May Wind Up Operations in Chapter 12 and Farm Through LLCs

Judge Somers wrote two opinions on debtors’ eligibility to reorganize in chapter 12.

10th Circuit, Kansas

September 15, 2021

Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot

Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?

9th Circuit, Arizona

August 26, 2021

Subchapter V Trustee Removed for an Undisclosed Conflict of Interest

Although disqualified and removed for an undisclosed conflict, the trustee was not removed in all other cases.

11th Circuit, Florida, Florida Middle District

August 25, 2021

Selling Assets of a Defunct Business Is a Legitimate Activity in ‘Sub V,’ Florida Judge Says

The oversight of a distribution by a chapter 7 trustee (and the attendant expense) isn’t required when a debtor liquidates the assets in Subchapter V of chapter 11.

11th Circuit, Florida, Florida Middle District

July 12, 2021

Liquidating a Defunct Corporation Qualifies for the SBRA, Judge Lopez Says

Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.

5th Circuit, Texas, Texas Southern District

June 01, 2021

Debt from a Defunct Business Can Help to Qualify for Subchapter V

Part-time self-employment, coupled with debt from a defunct business, qualified the debtor for reorganization under Subchapter V of chapter 11.

4th Circuit, North Carolina, North Carolina Middle District