By: Chris Kramer
June 09, 2011
A commission from the American Bankruptcy Institute discussed a move to overhaul chapter 11 of the U.S. Bankruptcy Code in the June addition of the ABI Journal.
The column, penned by ABI Chairman Robert Keach and Albert Togut, provides an overview of ABI President Geoff Berman's initiative to review and recommend changes to Chapter 11, according to the organization's website.
"While the Bankruptcy Code was developed in an era when the biggest employers were manufacturers, the biggest employers today are service companies such as retailers and technology-driven enterprises," wrote the authors.
Berman has instructed Keach and Togut to assemble a group of chapter 11 academics, bankers and practitioners to study possible bankruptcy law reforms. The commission also plans on holding hearings across the country to collect data and opinions on the subject.
There were 458 Chapter 11 filings during the first quarter of 2011, reported the American Bankruptcy Institute. It is primarily used to reorganize the debtors business affairs and assets and tends to be the most complex of all bankruptcy cases.