Introduced by Senator Whitehouse (D-RI), S. 3675, the Small Business Job Preservation Act of 2010, would add “Subchapter V-Reorganization of a Small Business Enterprise” under chapter 11 of the Bankruptcy Code. The bill defines "small business enterprise debtor" under section 1183 as follows: “A debtor: (A) that is engaged in commercial or business activities; and (B) has aggregate noncontingent, liquidated, secured, and unsecured debts as of the date of order of relief-(i) in an amount equal to not more than $7,500,000 (excluding debts owed to 1 or more affiliates or insiders); and (ii) not less than 50% of which arose from the commercial or business activities of the debtor; and the term ‘debtor in possession’ means the small business enterprise debtor, unless removed as debtor in possession under 1186(a).” The subchapter would apply only where a small business enterprise debtor elects that this subchapter shall apply.
Under Section 1190 of this legislation a plan filed under this subchapter must include a brief history of the business operations, a liquidation analysis, and projections on the ability of the small business debtor to make payments under the reorganization. The bill provides for a standing trustee under section 1184 to oversee the reorganization to ensure all interests are taken into consideration and costs are reduced. It also proposes that only the small business enterprise debtor may file a plan under this subchapter which must be filed not later than 90 days after the order for relief under this chapter.
Gregory R. Schaaf, a Member of Greenebaum Doll & McDonald PLLC, serves as the American Bankruptcy Institute's Special Projects/Task Force Leader for the Small Business Bankruptcy Committee for the Business Reorganization Committee. Please click on the links below to view the proposed Senate bill and Mr. Schaaf's summary.
Senate Bill 3675
Memorandum Re: S 3675 11th Congress, 2d Session Small Business Jobs Preservation Act of 2010
Have you ever wanted to become more involved in the workings of the American Bankruptcy Institute? Do you have a good idea for a topic for a program or for the newsletter? Would you like to stir up a good discussion on issues that interest you? And, are you interested in what Congress may – or may not – do to the Bankruptcy Code in the next few years? If so, then this is your chance. The term for leadership positions on the Legislation Committee is two years and the terms of a number of our current leaders have, or are about to, expire in the next few months. So, we are looking for a few good men (and women) to volunteer to become part of the process of keeping ABI members up to speed on legislative issues.
Here are your choices:
EDUCATION DIRECTOR: Coordinates, organizes and administers Committee CLE/CPE educational programs semi-annually at the ASM and the WLC, as well as Webinars and other special educational projects.
LISTSERVE FACILITATOR: Initiates and ensures frequent and appropriate listserve discussions on substantive matters relevant to the Committee.
NEWSLETTER EDITOR: Solicits and gathers appropriate original articles from members for quarterly newsletters; timely submits same to ABI membership department for publication and distribution.
MEMBERSHIP RELATIONS DIRECTOR: Coordinates and implements communications with Committee members; recruits and confirms membership of Committee members; facilitates Committee members’ involvement in the various subcommittees and task forces; recommends to the Chairs members to serve in various Committee leadership roles or on subcommittees and task forces.
SPECIAL PROJECTS and TASK FORCE LEADER: Form and lead ad hoc groups as tasked by the Chairs to perform research projects, conduct study groups, prepare manuals, create practice tools, write other publications, etc.
All positions have two-year terms except the Special Projects and Task Force Leaders whose term relates to the length of the projects. The positions report to and coordinate with the Chairs. We hope to have some of you joining us soon. If interested in a position, please contact the Co-Chairs at kcordry@naag.org and jmcmickle@winston.com.
Karen Cordry,
John McMickle, Legislative Committee Chairs
ABI's 7th Annual Complex Financial Restructuring Program will be held September 20 at the Fordham University School of Law in New York. This program offers a unique opportunity to gain an understanding of the various roles played by investment bankers, financial advisors and others representing stakeholders in today's complex cases. This year's hypothetical case of "Vandelay Industries Inc." will be dramatized by parties-in-interest as they examine strategic alternatives and seek the highest value for a troubled company. Throughout the one-day program, experienced professionals from the fields of finance, investment banking, accounting, law and turnaround play the roles of the constituents - company board, management, secured debt, trade creditors, attorneys and advisors, the government and others. From the decision concerning whether to file for bankruptcy through the exit strategy, the parties grapple with the real-world problems in real-time. Their positions frequently conflict and the debates can be heated, just as in today's cases.
This year will also mark the First Annual Anthony H.N. Schnelling Lecture in Commercial Bankruptcy. The lecture will feature a leading figure in the restructuring world, as a tribute to the memory of Tony Schnelling, a former ABI Vice President-Development. The first lecturer will be Hon. Burton R. Lifland, who, like Tony, is an alumnus of Fordham University School of Law.
Don't miss this unique, interactive event. Register today!
The ABI is pleased to join the New York University School of Law and the NYU Center for Law & Business to present this year's 36th Annual Lawrence P. King and Charles Seligson Workshop on Bankruptcy and Business Reorganization on September 22-23 in New York. This two day-long workshop includes a Basic Program designed for entry-level business bankruptcy lawyers, general practitioners and business professionals, as well as an Advanced Program for experienced practitioners and financial professionals. The program will again address the topics that practitioners need - fundamental business bankruptcy as well as advanced panels covering current issues. Click here to register today.
