Start Date: 8/7/2020 9:00 AM MDT
End Date: 8/7/2020 10:30 AM MDT
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.