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Recent Trends and Developments
I. Bankruptcy Act Storms Its Way Through Congress.
It may be too early to call it a sure thing, but the oft-proposed and never fully-passed legislation known as “Bankruptcy Reform” is moving quickly through Congress this session. The legislation, formally known as the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” (the “Act”) faces few, if any, obstacles, and looks as if it is headed for the President’s desk. The Senate passed the Act in March by an overwhelming 74-25 margin (H. Clinton abstained). The House will take it up when it returns from its recess on April 5
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II. The Vanishing Earn-Out Reorganization Plan; Corporate Bankruptcy as an Extension of the Mergers and Acquisitions System.
In the recent history of corporate bankruptcy, a distressed company would file bankruptcy with the goal of making business adjustments, confirming a plan of reorganization, and emerging from bankruptcy. In recent years, however, the trend in has been for the case to be an extension of the merger and acquisition world. More and more firms which file chapter 11 are sold outright, or merged into other firms. This is a departure from proposing the traditional "earn out" plan in which the debtor pays its pre-repetition claims from post-confirmation operations.
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III. Bankruptcy Reform - The Flying Dutchman of the Legislative World? (October, 2004).
Over the last decade much ink has been spilled, substantial time and energy invested, and major money spent on a concept known as "Bankruptcy Reform". The target of bankruptcy reform legislation has been the existing consumer bankruptcy system. Such legislation attempts a major overhaul, with the result being a radical limitation on the ability of individual debtors to fully discharge debt through the current chapter 7 process....
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Why a Healthy Company Needs a Bankruptcy Lawyer (April, 2003)
Using Creditors Committee to Increase Recoveries in Chapter 11 Cases
The Reederlaw Report
 The Reederlaw Report is published by David M. Reeder and Reeder Law Corporation. Reeder Law Corporation represents all parties to insolvency proceedings, including:
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debtors (both business and individual)
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creditors (both secured and unsecured)
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creditors' committees
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bankruptcy trustees
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businesses and individuals who are sued by bankruptcy trustees
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landlords when the tenant files or threatens to file a bankruptcy case, and
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buyers of assets from bankruptcy estates.
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