Press
8 years 16 weeks ago
A bankruptcy research group unveiled hundreds of ideas for a “substantial modernization” of Chapter 11 of the U.S. Bankruptcy Code.
The American Bankruptcy Institute’s proposals to Congress, released today, followed more than two years’ research into ways to fix distressed companies, the group said in a fact sheet. They include making it easier to obtain financing during bankruptcy and creating an alternative path for small and medium-sized businesses to reorganize.
8 years 16 weeks ago
The American Bankruptcy Institute released its anticipated report on Monday on how Chapter 11 laws should be reformed and updated. I was part of an earlier advisory committee that struggled with the special treatment of derivatives and related securities trades in Chapter 11 cases. The so-called safe harbor provisions excuse derivatives from much of the normal operation of the bankruptcy code. Normally, a debtor has some time to decide which contracts it wants to keep and which it no longer needs. But with derivatives, the choice moves to the non-bankruptcy parties, which get to decide whether they will allow the debtor to keep the contract or whether they will terminate the deal instead.
8 years 16 weeks ago
The American Bankruptcy Institute (ABI) released this morning its highly anticipated commission report on reforming Chapter 11. Without further ado, readers can find the commission’s recommendations here.
8 years 16 weeks ago
The commission tasked with recommending reforms to the 36-year-old U.S. bankruptcy regime released a long-awaited report on Monday saying that the current system doesn't work and urging Congress to give troubled businesses a better chance at rebuilding in Chapter 11. The report by the American Bankruptcy Institute's Chapter 11 reform commission will frame years of debate within the restructuring community about strengthening the bankruptcy process as a turnaround tool.
8 years 16 weeks ago
The American Bankruptcy Institute (ABI) has just released its findings following a three-year study of Chapter 11 bankruptcy law, involving hundreds of bankruptcy professionals and academics and the study recommends (among other things) significant changes to the way smaller businesses are treated during bankruptcy proceedings, notably giving family-run businesses a way to retain control post-petition.
8 years 16 weeks ago
While restructuring professionals have proposed some interesting changes to the bankruptcy code, it’s also striking what their 370-page report leaves out. Here are some hot topics in the bankruptcy world that wouldn’t be affected.
8 years 16 weeks ago
Bankrupt U.S. companies would have more leeway to impose restructuring plans over creditors' objections under new recommendations by a commission to overhaul Chapter 11 bankruptcy rules. As part of a report to be issued on Monday, the American Bankruptcy Institute's Commission to Study the Reform of Chapter 11 recommended eliminating a rule that at least one impaired creditor class must vote to accept a company's bankruptcy exit plan for the plan to be eligible for court approval.
8 years 21 weeks ago
In 2012, the American Bankruptcy Institute created the ABI Commission to Reform Chapter 11, co-chaired by Robert Keach and Albert Togut, and its report is due out by year-end. Howard Brownstein of the Brownstein Corporation sat down with them to discuss the report.
8 years 28 weeks ago
After nearly four decades since the U.S. Bankruptcy Code was passed, the American Bankruptcy Institute established a commission to revisit the guidelines that no longer fit in the current world of complex bankruptcy workouts and turnarounds. After discussions, field hearings and deliberations, the ABI Commission to Study the Reform of Chapter 11 plans to make its recommendations for a major overhaul at the end of the year.
8 years 50 weeks ago
In 2011, the American Bankruptcy Institute ("ABI") announced the formation of a new commission to study overhauling Chapter 11 of the Bankruptcy Code. Following the tone set at the ABI's 2009 legislative symposium "Chapter 11 at the Crossroads: Does Reorganization need Reform?", ABI President Geoff Berman initiated the study with an eye towards recommending changes to Chapter 11.
