The U.S. Senate this week passed a bill to restore, permanently, a Subchapter V debt eligibility threshold raised during the pandemic, which bankruptcy practitioners say would open up the streamlined Chapter 11 process to more small and medium-sized businesses at an economically critical time.
The prevalence of out-of-court restructurings among big companies has come into sharper focus in the first half of this year — whether those companies have filed for bankruptcy yet or not, experts told Law360.
Two companies facing significant asbestos-related liabilities headed to bankruptcy court with roadmaps for a resolution. A steel tube maker sought Chapter 15 protection following what it described as a year of tariff-related woes. And Arizona's largest fire district, which has stopped responding to emergency calls, filed for Chapter 9 relief after its local government withheld funding.