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ARTICLE · 05 NOVEMBER 2020

Bill Proposes Sweeping Changes To Protect Workers In Chapter 11

Patterson Belknap Webb & Tyler LLP
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On September 29, 2020, the House Judiciary Committee advanced H.R. 7370, Protecting Employees and Retirees in Business Bankruptcies Act of 2020, a Democrat-sponsored bill, to the full chamber.

United StatesInsolvency/Bankruptcy/Re-Structuring
Brian Guiney
Brian Guiney
Wolete Moko
Wolete Moko

On September 29, 2020, the House Judiciary Committee advanced H.R. 7370, Protecting Employees and Retirees in Business Bankruptcies Act of 2020, a Democrat-sponsored bill, to the full chamber. If enacted into law, the bill would usher in considerable changes in commercial bankruptcy cases, including in the areas of executive compensation, employee and retiree benefits, and confirmation of a Chapter 11 plan. Some of the more salient provisions of the bill are listed below; for the complete text of H.R. 7370, click here.

Focus on Job Preservation

The bill proposes to:

  • amend current law and establish the principal purpose of Chapter 11 to focus on the preservation and continuation of the business as well as the preservation of jobs.

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