The Final Report of ABI’s Commission to Study the Reform of Chapter 11 explains how existing chapter 11 law, designed with large companies in mind and last comprehensively overhauled in 1978, is too slow, too costly and “not working” for small and medium-sized enterprises (SMEs), dissuading them from even attempting reorganization, according to a Bloomberg News analysis yesterday. The Commission recommended that Congress make any $10 million company automatically eligible for treatment as an SME, while one with less than $50 million in assets or debt could petition the court for SME treatment. Companies with publicly traded securities and individuals wouldn’t qualify. The Commission set out ways to make Chapter 11 simpler and less costly for SMEs while providing tools for them to reorganize effectively.
http://www.bloomberg.com/news/print/2015-01-12/abi-wants-chapter-11-eas…
Click here to read the Commission’s recommendations for SME cases: https://abiworld.box.com/s/uzc6yo7dr8lt1g2m4uxs