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Adam Prescott Panelist for Strafford Webinar, “Preventing Manipulation of Subchapter V Bankruptcy”


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Adam Prescott Panelist for Strafford Webinar, “Preventing Manipulation of Subchapter V Bankruptcy”

DATE: 24 AUG 2022
TIME: 1:00 - 2:30 PM EDT
LOCATION: Live Webinar - recording available
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This CLE webinar addressed how creditors can prevent the manipulation of Subchapter V by challenging the election eligibility and by paying careful attention to the projected disposable income. The panel discussed options for small businesses after the Bankruptcy Threshold Adjustment and Technical Corrections Act, guided counsel through eligibility requirements under Subchapter V, and reviewed risks related to the projected disposable income standard for confirmation.

Description

Most debtors who can do so are electing to proceed under Subchapter V of Chapter 11, although other options remain. Creditors, however, are advised to be wary of large companies and private equity funds attempting to use Subchapter V to circumvent Chapter 11 creditor protections.

Subchapter V permits deferred payment of often significant post-petition expenses and obligations over the life of the plan and abolishes the absolute priority rule if the debtor commits all “projected disposable income” to plan payments.

Creditors should be ready to challenge eligibility for election as a Subchapter V debtor, including whether the debts asserted by the debtors are accurate. If a debtor’s future disposable income is greater than projected, creditors will not receive any greater distribution.

Listen as this experienced panel of bankruptcy counsel discusses options for small businesses after the Bankruptcy Threshold Adjustment and Technical Corrections Act, eligibility under Subchapter V, and the projected disposable income standard.

Outline

  1. Overview of options for small business
  2. Challenging eligibility
  3. Challenging projected disposable income

Benefits

The panel will discuss these and other complex and critical issues:

  • Does a U.S. subsidiary of a parent company that is publicly traded on a foreign exchange qualify for Subchapter V?
  • Would foreign-owned U.S. subsidiaries funded by their foreign parent be eligible under Subchapter V?
  • What debts are counted in the debt limit?
  • What options exist for challenging whether claims are liquidated or contingent?
  • How should projected disposable income be calculated?

 

 

For more information and to access a recording of the webinar click HERE.

For more information on Adam and his practice, click HERE.