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Bankruptcy’s New Subchapter V: The Small Business Reorganization Act

Aug 10 2:00 PM - Aug 10, 2020 3:30 PM
Aug 10, 2020 2:00 PM - 3:30 PM
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The new Subchapter V bankruptcy alters creditors’ rights. For example, only the debtor can file a reorganization plan. And debtors are allowed to “cram down” a non-consensual reorganization plan. Learn more about this fasttrack, debtor-friendly bankruptcy option known as the Small Business Reorganization Act (SBRA).

Learning Objectives

  • Distinguish between a regular Chapter 11 bankruptcy and a SBRA bankruptcy filing under Subchapter V of Chapter 11
  • Identify your institution’s rights under the SBRA
  • Understand the terms of the debtor’s reorganization plan
  • Determine the appropriate steps to take under the reorganization plan
  • Challenge the debtor’s “cram down” based on the collateral valuation and financial projections

Bankruptcy filings are on the rise, and many business borrowers are opting to file under the SBRA which became effective in February 2020. The CARES Act expanded the SBRA’s coverage to small business borrowers with debts of less than $7,500,000. The SBRA is a new fast-track, debtor-friendly bankruptcy option that alters creditors’ rights in Chapter 11 bankruptcy cases.

The SBRA is faster because debtors are not required to file the detailed statement required in regular Chapter 11 cases. In addition, the SBRA reorganization plan must be filed within 90 days of the bankruptcy filing while a regular Chapter 11 plan can take a year or more. However, the most notable debtor-friendly characteristic is that the SBRA allows a debtor to “cram down” a non-consensual reorganization plan. Under the SBRA, only the debtor can file a reorganization plan, and the court can confirm a debtor’s plan without the support of any class of claims as long as the plan is deemed to be fair and equitable. This webinar will explain what your institution needs to know about SBRA Chapter 11 bankruptcy cases and how to handle them.

Agenda

Speakers

Elizabeth Fast & Eric L. Johnson, Spencer Fane LLP

Elizabeth Fast is a partner with Spencer Fane LLP where she specializes in the representation of financial institutions. Elizabeth is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions. She is a member of the Missouri State Banking Board by appointment of the Governor.

Eric Johnson is a partner at Spencer Fane LLP. He represents financial institutions in bankruptcy, non-bankruptcy insolvency proceedings, such as receiverships and foreclosure proceedings, out-of-court workouts and restructurings, and other insolvency matters. An experienced litigator, Eric also represents clients in complex insolvency related litigation, including bankruptcy avoidance actions and other adversarial or contested matters. He is a member of the panel of Chapter 7 trustees for the Western District of Missouri and has served as a federal equity receiver. He holds a bachelor’s from the University of Northern Iowa and a JD from the University of Iowa College of Law.

Location

Fees

$259.00

Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Lending & Collections
  • Compliance