§2146 Oversight Board Duties Related to Restructuring

Summary

Before the Oversight Board can certify that an entity (a debtor under federal bankruptcy law) should go through a restructuring, the Board must decide on its own that the following are true. The entity tried in good faith to reach a deal with its creditors. The entity has set up procedures to provide timely audited financial statements and has made draft financial statements and other information public so people can make an informed choice about restructuring. The entity is either a covered territory with a Fiscal Plan the Board certified, or a covered territorial instrumentality that is subject to or has adopted a Board‑certified Fiscal Plan. Either no court has approved a Qualifying Modification for the entity, or if one was approved the entity still cannot pay its debts, in which case the claims affected by that modification must be handled in a subchapter III case. At least 5 members of the Oversight Board must vote yes to issue the restructuring certification, and that vote also meets the requirement in section 2162(2).