In Traditional Chapter 11 the company must obtain at least one accepting class of creditors. This often means that the debtor must propose to pay creditors in full to obtain their consent.
In the new Small Business Bankruptcy Chapter 11 this is no longer required.
Paul Hollender is Board-Certified in both Business and Consumer Bankruptcy, and has been helping business owners deal with financial difficulties for 43 years.
If you think this new law might help you, please call (718) 442-4424 to schedule an evaluation and strategy meeting.