ArentFox Schiff develops restructuring strategies that leverage the benefits of Subchapter V of Chapter 11 for qualifying businesses and their stakeholders.
Subchapter V offers companies with less than $7.5 million of qualifying liabilities an opportunity to reorganize in Chapter 11 using a more efficient and streamlined process. Many debts are excluded from this threshold – for example, unmatured lease liabilities and debts owed to insiders and affiliates – opening Subchapter V up to a wide array of middle-market companies across all major business sectors and industries, including retail, health care, financial services, energy, construction and transportation. Led by Partner George Angelich, our team has deep experience representing debtors, creditors, shareholders, and fiduciaries in Subchapter V cases across the country, including complex international situations involving dual restructurings and sales, reorganizations, and liquidations of domestic subsidiaries of foreign parent companies.
Subchapter V cases proceed on an expedited timeline, give the debtor the exclusive right to file a plan of reorganization, allow the Bankruptcy Court to approve that plan without creditor support, and do not (typically) feature a creditors’ committee. These and other nuances require experience and expertise to navigate successful client outcomes. Our team features thought leaders and counselors with a strong collective track record of developing and executing highly effective restructuring strategies tailored to each business and the objectives of key stakeholders. In 2022, the M&A Advisor recognized our representation of CoverFX in connection with its sale and restructuring in Subchapter V as the Chapter 11 Reorganization of the Year (Between $10MM and $100MM).
Small Business Reorganization Act of 2019
Key Events in the Timeline of Subchapter V Cases
Subchapter V and Other Forms of Bankruptcy
Handbook for Small Business Chapter 11 Subchapter V Trustees
Chapter 11 Subchapter V Legal Manual
Open Access to the Subchapter V Statutes
In re G-Star Raw Retail Inc., et al., Case No. 20-16040 (Bankr. C.D. Ca.)
In re Summit Financial Inc., Case No. 8:21-BK-12276-SC (Bankr. C.D. Ca.)
In re CFX US Co., Inc., et al., Case No. 22-10022 (DSJ) (Bankr. S.D.N.Y.). Arentfox Schiff represented cosmetics company CoverFX (k/n/a CFX) in formulating and executing a successful multi-step restructuring process. We negotiated and executed consensual resolutions with secured and unsecured creditors, the sale of the company’s brand and inventory, and the confirmation of a Subchapter V plan within 48 days of the U.S. and Canadian companies’ chapter 11 filings. In 2022, the M&A Advisor awarded the ArentFox Schiff team of George Angelich, Justin Kesselman and Patrick Feeney Chapter 11 Reorganization of the Year (Between $10MM and $100MM) for this engagement.
In re New York Classic Motors, LLC, Case No. 21-10670 (MG) (Bankr. S.D.N.Y.)
In re Parking Management, Inc., Case No. 20-15026 (TJC) (Bankr. D. Md.)
Illinois Bankruptcy Court: Preliminary Distributions Lock Subchapter V Plan
Impacts of Stimulus Legislation on the Bankruptcy Code: Debtor Eligibility and Preference Exceptions
COVID-19 Stimulus Legislation Aims to Make Chapter 11 Easier for Many More Small Businesses
