On April 29, 2021, on behalf of a client, Sullivan Hill confirmed the first Subchapter V Chapter 11 Plan in the Southern District of California. Congress enacted the Small Business Reorganization Act in February of 2020 in hopes of providing companies with limited debt the opportunity to financially reorganize – saving businesses, jobs and trade relationships. Historically, Chapter 11 has been far too expensive for small businesses. Subchapter V helps to alleviate that problem, making relief available to a broader group.
Shareholder Chris Hawkins said, “It was a pleasure to get to work under the new statute. From what we are hearing in the market place, judges, lawyers and clients think that the Small Business Reorganization Act is quite the success so far – after years in the making.”
Shareholder Gary Rudolph added, “We are thrilled for our client and hope that others benefit from the new law as well. It was perfectly timed to help ease some of the economic challenges of the pandemic.”
The Insolvency & Commercial Bankruptcy practice group is well-known both locally and nationally for its extensive experience in the representation of creditors, debtors, trustees, creditors’ committees and receivers. Our lawyers are well versed in the Small Business Reorganization Act and can assist clients to determine whether Subchapter V is a viable option for their business.
About Sullivan Hill:
Sullivan Hill has provided efficient, aggressive, and responsive legal representation for more than 50 years. The firm provides full service representation to clients in a variety of industries with an emphasis in insolvency, construction disputes, insurance coverage, real estate, business disputes, civil litigation, and transactional work. The firm has offices in San Diego and Las Vegas.