Rep. Zoe Lofgren (D-Calif.) and Rep. Ken Buck (R-Colo.) yesterday introduced H.R. 4193, the "Bankruptcy Venue Reform Act of 2021," to require that chapter 11 bankruptcy proceedings take place where the principal place of business or principal assets of the corporation are located, according to a press release. The bill's aim is to ensure that the employees, small businesses, and local communities that are most impacted by a chapter 11 bankruptcy are able to fully and fairly participate in proceedings, according to Lofgren and Buck. “Justice is best served when corporate bankruptcies are adjudicated locally, with convenient court access for employees, retirees, and local creditors and a judge who knows the affected community,” said Rep. Lofgren. "Our bill will require corporations filing chapter 11 bankruptcy to go through those proceedings in the forum they are primarily located rather than running off to a court across the country," said Rep. Buck. "This will eliminate companies’ ability to tilt the scale of justice and ensure the case is heard in a court familiar with all the affected stakeholders.” The Bankruptcy Venue Reform Act of 2021 bill text is linked here.
