Minnesota Chapter 11 bankruptcy & business reorganization

Karl Johnson is certified as a Business Bankruptcy Specialist by the American Board of Certification. His experience includes representing debtors in the multistate Granite City Food & Brewery Chapter 11 cases and securing confirmation of an early Subchapter V reorganization plan while practicing at a prior firm.

Karl has appeared as attorney of record in thousands of bankruptcy cases across Chapters 7, 11, 12 and 13. His work for debtors, creditors and trustees informs his approach to the competing interests that shape a business restructuring.

Meet Karl Johnson

A business facing loan defaults, collection pressure or a cash shortage needs an assessment of both its immediate obligations and its prospects for continued operations. A negotiated workout may provide enough room to address the problem. Other situations call for Chapter 11, a sale or an orderly wind-down.

The assessment begins with cash flow, financial statements, debt schedules, collateral, leases, tax obligations and the business’s forecast. The objective is to identify a realistic path before the company commits to a process it cannot fund or a proposal it cannot perform.

Chapter 11 can provide a framework for an operating business to address its debts while proposing a reorganization plan. Filing a case is only the beginning. The business must address operating needs, reporting obligations, creditor negotiations and the requirements for confirmation.

For a company with multiple locations, secured lenders, equipment financing or significant lease obligations, those issues are connected. A restructuring strategy must account for the business’s operations as well as the legal treatment of its debts.

Access to cash can be an immediate concern in Chapter 11. When cash or receipts constitute a creditor’s cash collateral, their use generally requires that creditor’s consent or court authorization. Budgets, collateral values and adequate protection can become central to the negotiations.

Early case planning may also involve payroll, insurance, utilities and other operating obligations. Karl evaluates those needs alongside the company’s secured debt and the relief appropriate to the particular case.

Bankruptcy litigation and contested creditor issues

A proposed plan must connect the treatment of creditors with the business’s ability to perform. That requires attention to projected cash flow, secured claims, creditor negotiations and the applicable confirmation requirements. A proposal that appears workable on paper must also make sense for the business.

Leases and other ongoing contracts can materially affect the available options. Depending on the circumstances, a case may involve assuming, assigning or rejecting agreements, subject to the Bankruptcy Code’s requirements.

When a sale is the appropriate path, Chapter 11 may provide a process for selling business assets under court supervision. A sale under Section 363 and a confirmed reorganization plan serve different purposes; the strategy should reflect the company’s assets, financing and operating prospects.

Subchapter V is a form of Chapter 11 available to qualifying small-business debtors. It changes several features of the conventional Chapter 11 process, including the role of a trustee, plan procedures and the treatment of ownership interests. Eligibility and the ability to fund a feasible plan require careful evaluation.

A Subchapter V trustee is appointed to facilitate the process. Unless the court orders otherwise, the case generally proceeds without an official creditors’ committee or a separate disclosure statement. The rules also permit confirmation without every impaired creditor class accepting the plan when the applicable statutory requirements are met.

Karl’s experience with Subchapter V extends to both debtor representation and teaching other bankruptcy professionals about its use.

Granite City Food & Brewery.

While practicing at a prior firm, Karl represented debtors in the Granite City Food & Brewery Chapter 11 cases, involving restaurant operations across more than a dozen states. The cases included a court-approved Section 363 asset sale. The linked matter summary identifies Karl’s role and the public filings supporting that description.

UMAPM Holding Company — confirmed Subchapter V plan.

Karl represented UMAPM Holding Company, LLC at MJB Law in a Minnesota Chapter 11 reorganization. The court confirmed a consensual Subchapter V plan in November 2025, and the debtor reported substantial consummation in December. Read about the UMAPM Chapter 11 reorganization.

Early Subchapter V plan confirmation.

In an April 29, 2020 announcement, Karl’s former firm, Taft, credited him with securing confirmation of what it believed was the first approved Subchapter V plan in Minnesota and the Eighth Circuit. This prior-firm experience places his work with the procedure near the beginning of its implementation.

These examples describe Karl’s experience, including work performed at prior firms. Results depend on the facts and circumstances of each matter and do not predict an outcome in another case.

Karl’s teaching includes programs addressing small-business reorganization, Subchapter V plan issues and business asset sales. Selected presentations include:

• “Hot Topics in Sub-Chapter V,” Minnesota CLE’s 2023 Bankruptcy Institute, with Judge Anita L. Shodeen and Alexander J. Beeby.
• “Asset Sales and Liquidating Plans in Sub V,” National Association of Bankruptcy Trustees, 2021 Annual Conference.
• “Small Business Reorganization,” State Bar Association of North Dakota, 2020 Agricultural Law & Bankruptcy program, with Kesha Tanabe and Alexander Beeby.

A company’s financial distress can create separate questions for its owners and personal guarantors. The business’s obligations, an owner’s guarantees and the owner’s individual assets require distinct analysis.

Karl also handles Chapter 7 matters for business owners and personal guarantors when reorganization is not the appropriate route. A business entity’s Chapter 7 liquidation differs from an individual owner’s case, and filing for the company does not automatically resolve the owner’s personal liability.

For SBA COVID EIDL loans in default or at risk of default, see our guidance on EIDL default, Treasury collection and personal-guarantee options.

Agricultural businesses may face different restructuring choices depending on the operation, ownership and debt. Karl handles agricultural bankruptcies and evaluates Chapter 12 alongside other available routes. Explore the agricultural practice. Our Chapter 12 farm bankruptcy guide addresses eligibility, seasonal cash flow, farm assets and the information useful for an initial discussion.

If your business is facing lender pressure, a cash shortage or a decision about Chapter 11, contact Karl Johnson to discuss the circumstances and available options.