What Middle Market Lenders Need to Know about Subchapter V

Most middle market lenders probably paid little attention when the Small Business Reorganization Act (SBRA) — popularly known as Subchapter V, referring to the new Subchapter V of Chapter 11 of the Bankruptcy Code — took effect in February 2020. Only businesses with combined secured and unsecured debts of less than about  $2.7 million qualified for this new subspecies of Chapter 11 relief.

Heidi Sorvino and Amy Vulpio explain what lenders need to know if a borrower proposes a Subchapter V filing or, worse, files one without consulting its lender first.

Read more in the Journal of Corporate Renewal.