Supporters of a small-business bankruptcy program are working to secure the U.S. Senate votes needed to extend recently expired provisions that had allowed more companies to participate, a restructuring lawyer said Tuesday.
Small businesses had been able to apply for a faster reorganization process under Subchapter V of the U.S. Bankruptcy Code if they had up to $7.5 million in debt until June 21, when a temporary extension expired, lowering the maximum to about $3 million. Congress temporarily raised the debt limit in 2020, shortly after Subchapter V was enacted, in part to help small businesses during the Covid-19 pandemic.
The senator…