SA2658 prevented companies from using bankruptcy to discharge debt related to judgments arising from gun related lawsuits.

Cities across America had begun suing gun manufacturers for expenses related to actions committed by criminal elements. Justifying their actions by equating these suits to the tobacco company lawsuits, gun control organizations were trying to bankrupt an entire industry out of existence.

The bankruptcy code allowed a company with such a judgment to get out of such a judgment through reorganization. This bill would have made large judgments a nail in the coffin of gun manufacturers.