Business Restructuring and Turnaround, Accounting and Finance: An In-Depth Analysis of Subchapter V Chapter 11 Bankruptcy

Bakhovuddin Sadriddin ogli Muratov

Citation: Bakhovuddin Sadriddin ogli Muratov, "Business Restructuring and Turnaround, Accounting and Finance: An In-Depth Analysis of Subchapter V Chapter 11 Bankruptcy", Universal Library of Business and Economics, Volume 02, Issue 04.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The enactment of the Small Business Reorganization Act of 2019 (SBRA), which introduced Subchapter V into Chapter 11 of the United States Bankruptcy Code, marked a qualitative change in the approach to corporate reorganization. The previously established framework of American bankruptcy law, grounded in the absolute priority rule and a multilevel system of covenants, in practice generated structural barriers for small and medium-sized enterprises (SMEs), as a result of which even economically viable companies were often displaced into liquidation procedures. The conducted study is oriented toward an applied understanding of Subchapter V and includes an analysis of its normative formation, the financial-legal instruments for confirmation of reorganization plans, the accounting parameters for determining disposable income, as well as a comparison with foreign restructuring models, including the Part 26A Restructuring Plan in the United Kingdom and EU Directive 2019/1023. Central attention is devoted to an empirical assessment of data arrays for 2023–2025, an examination of the behavioral determinants of entrepreneurs’ choice of the relevant procedures, and a review of the emerging case law clarifying the limits of applicability of this mechanism in the context of macroeconomic instability.


Keywords: Subchapter V, SBRA (2019), Chapter 11 of the United States Bankruptcy Code, Cramdown, Projected Disposable Income (PDI), SME Restructuring, Transaction Costs and Behavioral Factors.

Download doi https://doi.org/10.70315/uloap.ulbec.2025.0204012