Small Business Reorganization Technical Corrections Act

Bill: 117-s-2679
Sponsor: full_name: Sen. Grassley, Chuck [R-IA]
Introduced: 2021-08-09
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-08-09
text: Read twice and referred to the Committee on the Judiciary.

Summaries:
action_date: 2021-08-09
action_desc: Introduced in Senate
text: <p><strong>Small Business Reorganization Technical Corrections Act</strong></p> <p> 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. </p>

tv_txt: II 117th CONGRESS 1st Session S. 2679 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.

1. Short title This Act may be cited as the Small Business Reorganization Technical Corrections Act . 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. .