Contact:
Hartgen
(703) 739-0800
href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org
RESPONDENTS
SPLIT OVER BANKRUPTCY COURT’S OBLIGATION TO HONOR A DEBTOR’S
REQUEST TO CONVERT FROM A CHAPTER 11 TO CHAPTER 7 LIQUIDATION, ACCORDING
TO LATEST ABI POLL
size='3'>February 20, 2007, Alexandria, Va.
— Respondents in a recent American Bankruptcy Institute online
poll were divided over the question of whether a bankruptcy court is
obligated to honor a chapter 11 debtor’s request to convert its
case to a chapter 7 liquidation, even after the debtor met the standards
of §1112(b)(4). Thirty-three percent of respondents disagreed that
a bankruptcy court was not obligated to honor a conversion request, even
after the debtor met the standards of §1112(b)(4), if it was not in
the best interests of all stakeholders in the proceeding. Eight percent
“disagreed somewhat,” while 25 percent “strongly
disagreed.”
Thirty percent of respondents
agreed however, that the bankruptcy court is not obligated to honor a
conversion request, with 11 percent “agreeing strongly” and
9 percent “somewhat agreeing.” The final third of
respondents – 34 percent – did not know or had no
opinion.
ABI members and the
public were welcome to submit their response to the statement:
“A bankruptcy
court is not obligated to honor a chapter 11 debtor’s request to
convert its case to chapter 7, even after the debtor meets the standards
of
size='3'>§1112(b)(4), if it is not in the best interests of all
stakeholders”
size='3'>The ABI Quick Poll was open for voting from Feb. 9 -
15.
ABI’s weekly Quick Poll
is posted on ABI’s home page,
href='http://www.abiworld.org/'>
size='3'>www.abiworld.org
size='3'>. 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'>
color='#0000ff'>http://www.abiworld.org/conferences.html.