On February 10, 2020, this court entered General Order No. 20-1, which adopted the Interim Rules necessary to facilitate the implementation of the Small Business Reorganization Act of 2019 (the “SBRA”).
The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), enacted on March 27, 2020, necessitated a revision to SBRA Interim Rule 1020.1On April 22, 2020, this court adopted General Order No. 20-3, which incorporated the revision to Interim Rule 1020.
The relevant provisions of the CARES Act expired on March 27, 2022. Therefore, the revision to Interim Rule 1020, as adopted by this court’s General Order No. 20-3, is superseded by the expiration of the CARES Act.
Therefore, IT IS ORDERED that General Order No. 20-3 is vacated.
IT IS FURTHER ORDERED that General Order 20-1 remains in effect until further order of this court or until superseded by subsequent Federal Rules of Bankruptcy Procedure or Local Rule.
IT IS FURTHER ORDERED that if Congress reinstates 11 U.S.C. §1182(1) in a manner identical to the §1182(1) added by the CARES Act but made ineffective by the passing of the sunset provision, then revised Interim Rule 1020 will again be effective unless or until it is modified, nullified, or superseded by court order or subsequent Federal Rules of Bankruptcy Procedure or Local Rule.
Dated: April 15, 2022
1The CARES Act, among other things, broadened eligibility for businesses to seek protection under the SBRA by increasing the debt limit from $2,725,625 to $7,500,000 for cases filed on or before March 27, 2021. On March 27, 2021, the President signed into law the COVID-19 Bankruptcy Relief Extension Act, further extending the debt limit eligibility provision through March 27, 2022.
