Greylock Capital Says It’s Really a Small Business in Bankruptcy

Greylock Capital Management says it’s really nothing more than a small business that should be allowed to use special bankruptcy rules to quickly cancel a lease on its expensive, midtown Manhattan office space.

At a court hearing Tuesday morning, attorney Jeffrey Chubak argued that the company qualifies as a so-called Subchapter V debtor because only its affiliates owe hundreds of millions of dollars, not Greylock Capital Associates, the entity that filed for bankruptcy Jan. 31.

Once Greylock finishes deconsolidating its balance sheet, Associates will be under the maximum debt limit of about $7 million, Chubak told U.S. Bankruptcy Judge ...