It Just Got More Difficult To Qualify For Subchapter v Bankruptcy

Subchapter V of Chapter 11 of the Bankruptcy Code, which took effect four years ago, creates a more streamlined and less expensive Chapter 11 reorganization path for small business debtors.
Popular from the jump, under the original law to be eligible for Subchapter V, a debtor (whether an entity or an individual) had to be engaged in commercial activity and its total debts—secured and unsecured—had to be less than $2,725,625. At least half of those […]

By | June 19th, 2024 ||

Bankruptcy Court Paves The Way For Excluded Bondholders To Seek Recoveries From Pre-Petition Liability Management Transaction

In a recent decision in the Chapter 11 proceedings of Wesco Aircraft Holdings, Inc., operating as “Incora” (“Incora” or the “Debtors”),1 Judge Isgur tackled the limits of a pre-petition liability management transaction that, among other things (i) favored a certain group of bondholders (the “Participating Holders”) while excluding other holders2 (the “Excluded Holders”), (ii) subordinated the Excluded Holders’ claims, and (iii) released the Excluded Holders’ liens that secured such claims (the “Transaction”). By denying summary judgment […]

By | June 11th, 2024 ||

Redcon1 Dodges Chapter 7 Bankruptcy Fight

Seth Kleinman of Morrison & Foerster LLP spoke to Natural Products Insider about an involuntary Chapter 7 bankruptcy petition filed against sports nutrition brand Redcon1 by three of its creditors.

An involuntary bankruptcy petition is typically filed “when several unsecured creditors of a company believe that the management of the company itself is doing something with the funds of the company that are improper and that the company is already insolvent or will become insolvent because […]

By | December 4th, 2022 ||