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A Review of SME Restructuring in the United States
Dr Jason Harris, Professor of Corporate Law, University of Sydney Law School, Sydney, AustraliaSynopsis
A recent report by the American Bankruptcy Institute has concluded that the small business restructuring procedure in Subchapter V of Chapter 11 of the US Bankruptcy Code, introduced in 2019, has largely been a success. The report found that Subchapter V cases had higher plan confirmations and were faster and cheaper than standard Chapter 11 cases. The report recommends several technical amendments to the law, including the recommendation to reinstate the temporary debt limit of US$7.5 million, which subsequently fell back to $3,024,725 in June 2024.
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