December 72000

Senators Debate Merits of Bankruptcy Bill, Final Vote Occurs
Today

Proponents and opponents of the bankruptcy bill took to the Senate
floor yesterday to make their concluding arguments on the bankruptcy
reform legislation (H.R. 2415), according to the CQ Daily
Monitor.  The final vote is scheduled at 3:45 p.m. today.
Although only 31 senators voted Tuesday against invoking cloture,
Democrats were confident yesterday that they would find the three
additional votes needed to sustain a veto.  “I don’t
think it meets my criteria in a recognition of what ought to be a good
bill,” said Minority Leader Tom Daschle (D-S.D.).  “And
as a result, it will not have my support, and I don’t think it
would have the support necessary to override the veto.”

Both sides said changes to the bankruptcy laws are necessary, but
disagree on whether or not the legislation is the appropriate fix. 
Neither side offered much in the way of new arguments during the six
hours of debate.  Supporters agreed that the bill was not perfect,
while opponents continued to say it favors the credit card industry to
the detriment of the poor, the middle class and women. 

The post-cloture discussion was led by Sens. Paul Wellstone
(D-Minn.), Richard Durbin (D-Ill.) and Russell Feingold (D-Wis.) in
opposition and Sens. Chuck Grassley (R-Iowa), Joseph Biden (D-Del.) and
Robert Torricelli (D-N.J.) in support.  Wellstone and Durbin
attacked the bill, saying that it is imbalanced and too harsh on
consumer debtors with limited repayment ability and not justified by
downward filing trends.  They echoed opposition from consumer
groups, labor unions, bankruptcy professionals and women’s groups
for the bill’s alleged adverse impact on child support claimants
who would have to compete with credit card companies for a
debtor’s post-bankruptcy income stream.  Torricelli made a
special appeal to the Clinton administration to sign the bipartisan
bill.  He noted several pro-consumer provisions added to the bill
at the President’s request and warned that a President Bush may
not be as friendly toward the consumer protection provisions included
today.  “No bill that commands this broad support or…
is this controversial is perfect,” he said.  “Is it
fair and balanced?  Yes.  Does it deserve the support of the
Senate?  Yes.”  

A spokesman for Wellstone said he was confident that the President
would still veto the bill.  The President may have the option of a
veto after Congress adjourns.  Such a pocket veto would deprive
Congress of the chance to override it in a new vote.  This is
especially significant given the cloture vote margin: 67 votes (the
exact number who voted for cloture) would also be needed to override a
veto.

Armstrong World Files Chapter 11

Armstrong Holdings Inc. yesterday announced that its major operating
subsidiary, Armstrong World Industries Inc., filed a voluntary chapter
11 petition in order to resolve its asbestos liabilities, according to a
Reuters report.  The Lancaster, Pa.-based maker of floor and
ceiling products said cash demands of asbestos settlements now
“threaten the long-term health of its valuable and fundamentally
sound businesses.”  But Armstrong also said its businesses
were all operating as usual and suppliers would be paid on normal terms
for goods delivered and services provided after the chapter 11
filing.

Two of Armstrong World's wholly owned subsidiaries, Nitram
Liquidators Inc. and Desseaux Corp. of North America Inc., also filed
for protection.  Armstrong said that Triangle Pacific, WAVE and its
non-U.S. businesses were not included in the filing.  To enhance
its liquidity, Armstrong said, it obtained a commitment for a $400
million debtor-in-possession (DIP) facility with Chase Manhattan Bank,
which was submitted to the court for approval yesterday.  As of
Sept. 30, Armstrong World had $4 billion in consolidated assets and
debts of $3.3 billion. These debts include $180 million in 7.4 percent
quarterly interest bonds with more than 500 holders.