The Small Business Reorganization Act of 2019 went into effect on February 20, 2020. The Act was designed to streamline the restructuring process for small businesses facing financial woes: entities whose total non-contingent liquidated secured and unsecured debts do not exceed $2,725,625. Recently, under the CARES Act, Congress voted to increase the limit of debts to $7,500,000 for twelve months. For a small business, the Act is much more debtor- friendly than the regular Chapter 11 process and provides expedited processes that make it easier to confirm a plan of reorganization and emerge as a restructured entity.
Some of the highlights include:
If you think your company is in need of restructuring help and you want to learn more about this process, please don’t hesitate to contact the Shulman Rogers attorney you typically work with, or send a message to Michael Lichtenstein, Chair of the Bankruptcy, Restructuring and Creditors’ Rights Group by clicking here.
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