Contact: John Hartgen
703-894-5935
CORPORATE DEBTORS’ CHOICE OF LOCATION TO
FILE BASED ON STATE OF INCORPORATION SHOULD BE ELIMINATED, ACCORDING TO
CLOSE VOTE IN LATEST ABI QUICK POLL
December 21, 2010, Alexandria, Va. —Fifty-one
percent of respondents to ABI’s latest Quick Poll believe that the
Bankruptcy Code should be amended to eliminate the option of corporate
debtors to file their case based on the state of incorporation. Forty
percent “strongly agreed” and 11 percent “agreed
somewhat” that corporate debtors’ choice of location to file
based on state of incorporation should be eliminated.
The Bankruptcy Code currently permits corporations to consider venue
options for their proceedings based on domicile or state of
incorporation, location of principal assets, principal place of business
and whether an affiliate has a case pending in the district. The option
to allow businesses to file in the state in which they incorporated has
been criticized by some stakeholders who believe that companies are
filing in court districts of states that are away from their primary
base of operations.
Forty-six percent of respondents, however, agreed that corporate debtors
should be allowed to file in a venue based on state of incorporation.
Forty percent “strongly agreed” and 6 percent “agreed
somewhat” on the issue. One percent did not know or had no
opinion.
ABI members and members of the public were welcome to submit their
response to the statement: “Venue of a bankruptcy case based on
the state of incorporation of a corporate debtor should be
eliminated.”
ABI’s Quick Poll is posted on ABI’s home page,
href='http://www.abiworld.org/'>www.abiworld.org. 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/'>http://www.abiworld.net/quickpoll/
to access the results of previous ABI Quick Polls.
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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 ABI membership includes more than
12,600 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
href='http://www.abiworld.org/'>www.abiworld.org. For additional
conference information, visit
href='http://www.abiworld.org/conferences.html'>http://www.abiworld.org/conferences.html.