Small Business

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Pleading “Reasonable Due Diligence” Under the Amendment to § 547(b) (Preferences)

The Small Business Reorganization Act of 2019 (SBRA), Pub. L. No. 116-54 § 3(a), is probably the largest wholesale change to the Bankruptcy Code since BAPCA in 2005. Enacted in February 2020, the SBRA essentially created subchapter V of chapter 11 and made it easier for small business owners to keep their equity without having to liquidate and sell the remainder of their assets. However, in addition to creating subchapter V and making it easier for small businesses to reorganize, the SBRA also revised § 547(b) of the Bankruptcy Code with little fanfare associated with the change.

The Intersection of the 1111(b) Election and Subchapter V

As subchapter V matters continue to become a meaningful part of an insolvency practice, lawyers and financial advisors should be aware of the nuances that can arise in such matters when they intersect with the more complicated areas of bankruptcy law. The § 1111(b) election within a subchapter V matter falls squarely within this realm, and its application has led some cases into uncharted territory.

Friday, October 21, 2022

Article Tags

Corporate Governance

Court Administration

Creditors' Committee

Business Reorganization

Small Business

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Wednesday, October 19, 2022

Article Tags

Small Business

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Wednesday, October 19, 2022

Article Tags

Retail

Small Business

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Tuesday, October 18, 2022

Article Tags

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Are Valuation Disputes Futile?

Jan 2023

Friday, October 14, 2022

Article Tags

Labor/Employment

Small Business

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