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Bankruptcy Courts Have the Inherent Power to Recharacterize Debt as Equity According to Latest ABI Poll

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size='3'>Contact: John
Hartgen

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739-0800
            


href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org


BANKRUPTCY COURTS HAVE THE INHERENT POWER TO RECHARACTERIZE DEBT AS
EQUITY, ACCORDING TO LATEST ABI POLL

February 26,
2007,
w:st='on'>Alexandria,
w:st='on'>Va. — A wide majority of
respondents (62 percent) in a recent American Bankruptcy Institute
online poll said that bankruptcy courts have the inherent power to
recharacterize debt as equity. Forty-two percent of respondents
“agreed strongly” and another 20 percent “somewhat
agreed” that bankruptcy courts have the inherent power to
recharacterize debt as equity.

Fourteen percent disagreed that

bankruptcy courts had the inherent power to recharacterize debt as
equity. Seven percent “disagreed strongly” and another seven

percent “somewhat disagreed” that the bankruptcy courts had
the inherent authority to recharacterize debt as equity. Twenty percent
did not know or had no opinion on the issue.

ABI members and the public were

welcome to submit their response to the statement: “
color='black'>Bankruptcy courts have the inherent power to
recharacterize debt as equity.” The ABI Quick Poll was
open for voting from Feb. 16-22.

ABI’s weekly 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/'>
color='#0000ff' size='3'>http://www.abiworld.net/quickpoll/
to access the results of previous ABI Quick Polls.

###

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 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
href='http://www.abiworld.org/conferences.html'>
size='3'>http://www.abiworld.org/conferences.html.