Bradley attorney James Bailey was quoted in Bloomberg Law on temporary changes to the Small Business Reorganization Act (SBRA) that could save some companies that have been hit with uncertainties created by COVID-19. The SBRA was passed to speed up the process of reorganizing an insolvent company with less than $2.7 million in debt. However, the coronavirus relief package enacted in March raised the debt limit to $7.5 million to help small businesses survive the pandemic.
On top of expanding access to Chapter 11 and making it “less expensive and quicker,” the new law will also encourage more out-of-court resolutions, said Bailey. “That’s one way how they’ll negotiate and hopefully avoid bankruptcy,” he said.
The complete article, “New Bankruptcy Law Could Save Small Businesses Slammed by Virus,” appeared in Bloomberg Law on April 15, 2020.