Support seems to keep building even more for changes to where large corporate debtors can file chapter 11. The latest is a letter from "163 sitting, recalled, or retired United States Bankruptcy Judges." From the letter:
The venue selection options for bankruptcy cases under current law have led to forum shopping abuses that have disenfranchised local employees, creditors, and parties in interest from participation in bankruptcy cases, undermined public confidence in the integrity of the United States Courts and the bankruptcy process, inhibited the development of uniform, national bankruptcy jurisprudence, and led to inefficient allocation of judicial resources.
The judges join forty-two state attorneys general who signed a February letter supporting similar changes. The House bill (H.R. 4421) now has fifteen co-sponsors, which I believe is more than any venue reform bill has had. With all of that support, my views don't matter much, but I agree too.
Like I wrote before, there have been lots of efforts at venue reform, but this time feels different.
Comments
4 responses to “Letter from 163 Bankruptcy Judges Backs Venue Reform”
Too bad they don’t support venue reform to relax unnecessarily restrictions on consumers filing in the most convenient forum.
Golly, no Delaware or SDNY judges among the signatories 🙂
All true, but less then have of the active judges signed it! Could get interesting.
This is not my area, but I heard Ch. 11 attorneys complain that many districts are ill equipped to handle the large 11 cases. An example cited was the inability or unwillingness of courts to quickly schedule and grant the initial orders (ie cash collateral, etc.)so that a business can make payroll and keep operating.