Title: Small Business Reorganization Technical Corrections Act
Policy area: Finance and Financial Sector

Summary:
Small Business Reorganization Technical Corrections Act
This bill modifies provisions related to small business reorganization bankruptcies. Specifically, it provides that a small business debtor includes a debtor that is an affiliate of certain publicly traded companies. Additionally, it authorizes the bankruptcy trustee to operate the business of the debtor if the debtor ceases to be a debtor in possession.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2679 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 2679

  To amend title 11, United States Code, to make clarifications with 
 respect to amendments made by the Small Business Reorganization Act, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 9, 2021

Mr. Grassley (for himself and Mr. Whitehouse) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend title 11, United States Code, to make clarifications with 
 respect to amendments made by the Small Business Reorganization Act, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Reorganization 
Technical Corrections Act''.

SEC. 2. TITLE 11 AMENDMENTS.

    (a) Definition of Small Business Debtor.--Section 101(51D)(B)(iii) 
of title 11, United States Code, is amended by striking ``an issuer'' 
and all that follows and inserting ``a corporation described in clause 
(ii).''.
    (b) Definition of Debtor.--Section 1182(1)(B) of title 11, United 
States Code, is amended--
            (1) in clause (i), by inserting ``under this title'' after 
        ``affiliated debtors''; and
            (2) in clause (iii), by striking ``an issuer'' and all that 
        follows and inserting ``a corporation described in clause 
        (ii).''.
    (c) Trustee.--Section 1183(b)(5) of title 11, United States Code, 
is amended--
            (1) by striking ``possession, perform'' and inserting 
        ``possession--
                    ``(A) perform'';
            (2) in subparagraph (A), as so designated--
                    (A) by striking ``, including operating the 
                business of the debtor''; and
                    (B) by adding ``and'' at the end; and
            (3) by adding at the end the following:
                    ``(B) be authorized to operate the business of the 
                debtor;''.
    (d) Confirmation of Plan.--Section 1191(c) of title 11, United 
States Code, is amended by striking paragraph (3) and inserting the 
following:
            ``(3)(A) The debtor will be able to make all payments under 
        the plan; or
            ``(B)(i) there is a reasonable likelihood that the debtor 
        will be able to make all payments under the plan; and
            ``(ii) the plan provides appropriate remedies, which may 
        include the liquidation of nonexempt assets, to protect the 
        holders of claims or interests in the event that the payments 
        are not made.''.
                                 <all>