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Respondents Divided over Sale Process that Will Return the Most Value of a Bankrupt Company in Latest ABI Poll

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Contact: John Hartgen

            

703-739-0800

            

jhartgen@abiworld.org

RESPONDENTS
DIVIDED OVER
w:st='on'>SALE PROCESS THAT WILL RETURN THE MOST
VALUE OF A BANKRUPT
COMPANY IN LATEST ABI
POLL

July 24, 2007, Alexandria,
Va. —Results of a recent American Bankruptcy Institute
online poll showed that respondents were somewhat divided over whether
or not sales of large companies as going concerns under the §363
process returned far less value to the bankruptcy estate than through a
chapter 11 reorganization. The largest number of respondents (46
percent) disagreed that the sale of a large company under the §363
process would return far less value to the estate than a chapter 11
reorganization. Twenty-three percent “strongly disagreed”
and another 23 percent “disagreed somewhat.”

Traditionally, the sale of a
bankrupt business is completed through a chapter 11 reorganization plan
that identifies and deals with each class of creditors and
equity-holders, but it can take months or years to complete. A §363

sale, which is much like a controlled auction, can be completed in as
little as two to three months and has become a preferred method for
sales of distressed businesses.

Thirty-one percent of
respondents agreed that sales of large companies as going concerns under

§363 return far less value to the bankruptcy estate than through a
chapter 11 reorganization. Sixteen percent “strongly
agreed,” while another 15 percent “agreed somewhat”
that sales of large companies under the §363 process would return
less value to the bankruptcy estate than a chapter 11 reorganization.
Twenty-three percent of respondents did not know or had no
opinion.


size='3'>ABI members and members of the public
were welcome to submit their response to the statement: “Sales
of large companies as a going concern under section 363 return far less
value to the estate than through a Ch 11 reorganization.” The
latest ABI Quick Poll was
open to the public for voting from July 12-19.


size='3'>ABI’s Quick Poll is posted on
ABI’s home page,
title='http://www.abiworld.org/' href='http://www.abiworld.org/'>
color='#0000ff'>www.abiworld.org.
w:st='on'>ABI members and the public are invited to
respond to a question on a timely bankruptcy or insolvency issue. Visit

href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'>http://www.abiworld.net/quickpoll/ to access
the results of previous ABI
Quick Polls.

###


size='3'>ABI is the largest multi-disciplinary,
nonpartisan organization dedicated to research and education on matters
related to insolvency. ABI
was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The
w:st='on'>ABI membership includes nearly 11,500
attorneys, accountants, bankers, judges, professors, lenders, turnaround

specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org.
For additional conference information, visit
title='http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.