Courts Are Split on Counting Future Rent Toward the $7.5 Million Debt Cap in Sub V
If future liability on unexpired leases and executory contracts is counted, many companies will be ineligible for Subchapter V of chapter 11.
%1
Session Description
Bankruptcies are on the rise, sub-chapter v has been wildly successful and non-bankruptcy alternatives continue to see acceptance around the country, especially for start-up, venture backed companies. What leads to the decisions on how to end a company's life. The discussion will (should) feature Prof. Elizabeth Pollman from the University of Pennsylvania Carey Law School, who is researching this subject.
Suggested Categories
Target Audience
Other
Elizabeth
Pollman
epollman@law.upenn.edu
First Name
Geoff
Last Name
Berman
Email
glberman7895@gmail.com
Firm
Former ABI President
Bankruptcy Code
Journal Issue
Bankruptcy Rule
Two Judges Agree: A Class with No Votes Isn’t Considered in Confirming a Sub V Plan
One month apart, two Houston bankruptcy judges held that a non-voting class is not deemed to have voted against a plan.
With Interest Rates Above 9%, Small Businesses Slam the Brakes
With borrowing costs double their levels from just two years ago, many small businesses are pulling back, another sign of how higher interest rates are cooling the economy, the Wall Street Journal reported. Some entrepreneurs are postponing equipment purchases and expansion plans, while others are delaying hiring, rethinking loan terms or stepping up efforts to collect payments on time. Keeping borrowing costs in check and managing cash flow is an added challenge for business owners already dealing with labor shortages, inflation and economic uncertainty. The average interest rate small businesses paid on short-term loans has stood at 9% or higher over the past three months, according to the National Federation of Independent Business, up from 6.7% a year earlier and 4.6% in August 2021. The Federal Reserve voted unanimously this month to leave rates unchanged at a 22-year high but didn’t rule out future increases. The impact of higher rates is already being felt in other parts of the economy. Home sales have fallen as rising rates keep buyers on the sidelines and sellers from listing their homes. Hiring has slowed. Business investment has stalled.
Bankruptcy Code