§2146 Oversight Board Duties Related to Restructuring

Summary

Before the Oversight Board can issue a restructuring certification for an entity (as defined in bankruptcy law), it must find four things. The entity must have tried in good faith to reach a deal with its creditors. It must have set up procedures to produce timely audited financial statements and made draft financials and other information public so people can make an informed choice about a possible restructuring. The entity must be a covered territory or a covered territorial instrumentality with a Fiscal Plan that the Oversight Board has certified. Finally, either no court has approved a Qualifying Modification for the entity, or if one was approved, the entity still cannot make its debt payments; in that second case, all claims covered by that Qualifying Modification must be handled in a subchapter III case. To issue the certification, at least 5 members of the Oversight Board must vote yes.