Rochelle's Daily Wire

The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.

Dissolved by forfeit, a corporation cannot reinstate a charter and may resort to bankruptcy only to liquidate, Judge Eduardo Rodriguez says.

The Eleventh Circuit decided that the SBA acted within its rulemaking power by precluding chapter 11 debtors from receiving PPP loans under the CARES Act.

Debts acquired from running a business do not qualify someone for subchapter V of chapter 11 if the business has terminated and the assets are gone, according to Judge Cynthia Norton.

Section 326(b) could have been (incorrectly) read to mean that non-standing subchapter V trustees are not entitled to compensation.

To measure eligibility for subchapter V, the debtor must not be an affiliate of a public company that has 20% or more of the ‘voting securities.’

A cramdown plan can reduce the collateral coverage for secured creditors.

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

With deadlines already elapsed, Judge Grossman disagrees with three judges who allowed redesignation under subchapter V of chapter 11.

More than 600 cases have already been filed under the SBRA since subchapter V of chapter 11 became effective in February.