Small Business Reorganization Act of 2019 (SBRA) is Effective

The Small Business Reorganization Act of 2019 (“SBRA“) is in effect as of yesterday, February 19, 2020.  The SBRA was enacted to provide smaller business debtors with a more streamlined path to restructuring their debts.  Below are some highlights of the new law. Absolute-Priority Rule The SBRA exists today, in large part, because small businesses […]

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Seventh Circuit Holds that Reclamation Claims are Statutorily Subordinate to Prior Floating Liens on Inventory

In Whirlpool Corporation v. Wells Fargo Bank, N.A., et al. (In re hhgregg, Inc.),  No. 18-3363 (7th Cir. Feb. 11, 2020), the Seventh Circuit Court of Appeals recently held that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA“) created a federal priority rule rendering a secured lender’s first-priority, floating liens on inventory […]

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