ABI’s Commission to Study the Reform of Chapter 11 unveiled hundreds of ideas yesterday for a “substantial modernization” of Chapter 11 of the U.S. Bankruptcy Code, Bloomberg News reported today. The Commission’s report 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. The group suggests its proposal can accelerate companies’ exit from bankruptcy under chapter 11, which covers reorganizations, by adding a rule to avoid drawn-out and often expensive valuation fights between senior- and junior-ranking creditors. Lower-ranking creditors could get a chance at recovery if, after exiting chapter 11, the reorganized company’s value increases to a point where they “might have been in the money or received a greater recovery if the firm had been valued at a later date,” according to the Commission’s report.
http://www.businessweek.com/news/2014-12-08/bankruptcy-group-offers-con…
Click here to read the ABI Chapter 11 Reform Commission’s final report.
http://commission.abi.org/
To watch the ABI press conference yesterday releasing the final report, please click here.
http://commission.abi.org/
Sign up today for a special abiLIVE webinar tomorrow afternoon taking an in-depth look at the Commission’s final report.
http://www.abiworld.org/webinars/2014/1210Web/