Updated Edition of Popular Consumer Bankruptcy Guide Now Available in the ABI Bookstore
Contact: John Hartgen
703-894-5935
[email protected]
UPDATED EDITION OF POPULAR CONSUMER BANKRUPTCY GUIDE NOW AVAILABLE IN THE ABI BOOKSTORE
June 16, 2011, Alexandria, Va. — Available now in
the American Bankruptcy Institute's (ABI) Bookstore is an update of
ABI’s popular consumer bankruptcy guide, Consumer Bankruptcy:
Fundamentals of Chapter 7 and Chapter 13 of the U.S. Bankruptcy Code,
Third Edition. The new edition, written by Alane A.
Becket and William A. McNeal, covers the
fundamentals of consumer bankruptcy proceedings under chapters 7 and 13
of the U.S. Bankruptcy Code, including updated information on the
changes in the law since the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005 (BAPCPA).
In addition to providing the fundamentals of chapters 7 and 13,
including debtor's duties, procedure, dischargeability, automatic stay
and much more, the guide includes information on today's most litigated
questions, including issues surrounding applicable commitment periods in
chapter 13 plans, projected disposable income, and case conversion and
exemptions. In addition, the revised book analyzes several new U.S.
Supreme Court decisions, including Lanning, Ransom, Espinosa
and Milavetz, and addresses the current state of consumer
bankruptcy law. While it is ideal for the generalist practitioner, even
experienced consumer bankruptcy professionals will benefit from the
insights provided.
Members of the press interested in receiving a copy or interviewing the
authors should contact John Hartgen at 703-894-5935 or [email protected]. The
softbound Consumer Bankruptcy: Fundamentals of Chapter 7 and Chapter 13
of the U.S. Bankruptcy Code, Third Edition, is available for pre-order
($30 for ABI members; $50 for non-members) at ABI's Online Bookstore.
Click here to order. http://bookstore.abi.org.
###
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
13,000 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 http://www.abiworld.org. For
additional conference information, visit http://www.abiworld.org/conferences.html.
Consumer Financial Protection Bureau Will Be More Effective if Run By One Director Not a Five-Member Board According to Latest ABI Quick Poll
Contact: John Hartgen
703-894-5935
[email protected]
CONSUMER FINANCIAL PROTECTION BUREAU WILL BE MORE EFFECTIVE IF RUN BY ONE DIRECTOR, NOT A FIVE-MEMBER BOARD, ACCORDING TO LATEST ABI QUICK POLL
June 13, 2011, Alexandria, Va.— A majority of
respondents (60 percent) in a recent ABI Quick Poll thought that the new
Consumer Financial Protection Bureau (CFPB) will be more effective if
run by one director, as provided in the Dodd-Frank Act, than if run by a
five-member board, as proposed in pending legislation. Forty-seven
percent “strongly agreed” and 13 percent somewhat agreed
that one director should run the CFPB, not the proposed five-member
board.
Proposals have been introduced in the Republican-controlled House of
Representatives to water down some of the regulations passed by the
Dodd-Frank Act last year. Rep. Sean Duffy (R-Wis.) introduced H.R. 1315,
the 'Consumer Financial Protection Safety and Soundness Improvement Act
of 2011,' to amend the Dodd-Frank Act to create a five-member board to
lead the CFPB, rather than the current one director. The bill passed out
of the House Financial Services Committee and is now up for a vote
before the full House, but its prospects in the Democrat-controlled
Senate are unfavorable.
Thirty-two percent of respondents did not think that the CFPB would be
more effective if run by one director rather than the proposed
five-member board; 29 percent disagreed strongly, and 5 percent
disagreed somewhat. Three percent did not know or had no opinion on the
poll question.
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and
the public are invited to respond to a question on a timely bankruptcy
or insolvency issue. Visit 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 over 13,000
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 http://www.abiworld.org/conferences.html.
May Consumer Bankruptcy Filings Fall 16 Percent from Last Year
Contact: John Hartgen
703-894-5935
[email protected]
MAY CONSUMER BANKRUPTCY FILINGS FALL 16 PERCENT FROM LAST YEAR
June 2, 2011, Alexandria, Va. — May consumer
bankruptcies decreased 16 percent nationwide from May 2010, according to
the American Bankruptcy Institute (ABI), relying on data from the
National Bankruptcy Research Center (NBKRC). The data showed that the
overall consumer filing total for May reached 114,803, down from the
136,142 consumer filings recorded in May 2010.
“The continued drop in bankruptcies during 2011 reflects the pull
back in consumer credit over the past year, and a reduction in household
debt,” said ABI Executive Director Samuel J.
Gerdano.
The May 2011 filings also represented a 15 percent decrease from the
April 2011 consumer bankruptcy total of 134,720 filings. The percentage
of chapter 13 filings for May was 27 percent, a one percent increase
from April.
###
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
13,000 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 http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to
up-to-date research and statistics on bankruptcy filings. The database
contains complete information dating back to 1995. For more information
on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the
American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both individual and
business debtors. Its purpose is to achieve a fair distribution to
creditors of the debtor’s available non-exempt property.
Unsecured debts not reaffirmed are discharged, providing a fresh
financial start.
Chapter 11 of the Bankruptcy Code is available for both business and
consumer debtors. Its purpose is to rehabilitate a business as a going
concern or reorganize an individual’s finances through a
court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt
relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with
regular income whose debts do not exceed specific amounts; it is
typically used to budget some of the debtor’s future earnings
under a plan through which unsecured creditors are paid in whole or in
part.
ABI Once Again Partners to Hold the 31st Annual Midwestern Bankruptcy Institute Program in September
Contact: John Hartgen
703-894-5935
[email protected]
ABI ONCE AGAIN PARTNERS WITH UMKC TO HOLD THE 31st ANNUAL MIDWESTERN BANKRUPTCY INSTITUTE PROGRAM IN SEPTEMBER
June 15, 2011, Alexandria, Va. — The American
Bankruptcy Institute (ABI) and the University of Missouri-Kansas City
School of Law have collaborated again to present the 31st Annual
Midwestern Bankruptcy Institute program on Sept. 16. The conference will
take place at the Kansas City Marriott Downtown, Muehlebach Tower, in
Kansas City, Mo. The Midwestern Bankruptcy Institute features
distinguished speakers on current developments. There will also be a
discounted Consumer Track featuring breakout sessions specifically
designed for consumer practitioners. Attendees will have the opportunity
to earn 8.2 hours of CLE/8 hours of CPE credit, including 1.2/1 hours of
ethics.
Ronald S. Weiss of Berman, DeLeve, Kuchan & Chapman, LC (Kansas City) and Mark G. Stingley of Bryan Cave LLP (Kansas City) are the program co-chairs, and Bankruptcy Judge Dennis R. Dow (W.D. Mo.; Kansas City) is the judicial chair.
Bankruptcy Judges Barry S. Schermer (E.D. Mo.; St. Louis), Robert E. Nugent (D. Kan.; Wichita) and Arthur B. Federman (W.D. Mo.; Kansas City) will provide a special “Case Law Update” plenary session examining bankruptcy cases in the Eighth and Tenth Circuits and the Supreme Court.
The luncheon program will feature a keynote presentation titled “Creditors Gone Wild: Foreclosure Fraud” by Prof. William K. Black of the UMKC School of Law and Economics (Kansas City).
The Business Track breakout sessions include:
· Attacking the Secured Lender: New
Ideas for an Old Strategy—Yellowstone and Beyond...
· Intercreditor Agreements and their
Impact on the Chapter 11 Process
The Consumer Track breakout sessions include:
· Cutting-Edge Issues in Agriculture
Bankruptcies
· Mortgage Meltdown from Both the
Lenders’ and Borrowers’ Perspectives
For a full list of speakers for both breakout sessions, please click on
the following link:
http://www.abiworld.org/MW11/schedule.html
The Midwestern Bankruptcy Institute will also feature a “Views
from the Bench” panel discussion with 11 bankruptcy judges from
around the region, as well as the 'Evidence Law in the ‘ESI’
(Electronically Stored Information) Age' and 'Ethical Standards: Where
Do You Find Them, and Who Monitors Them?' sessions.Click on the link
below for more information on the 31st Annual Midwestern Bankruptcy
Institute program.
http://www.abiworld.org/MW11.
###
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
13,000 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 http://www.abiworld.org/conferences.html.
Business and Consumer Bankruptcy Developments IP and Economic Developments take Center Stage at ABIs Southwest Bankruptcy Conference
Contact: John Hartgen
703-894-5935
[email protected]
BUSINESS AND CONSUMER BANKRUPTCY DEVELOPMENTS,
INTELLECTUAL PROPERTY AND ECONOMIC DEVELOPMENTS TAKE CENTER STAGE AT
ABI’s 19th ANNUAL SOUTHWEST BANKRUPTCY CONFERENCE
May 27, 2011 Alexandria, Va. -- More than 500 are
expected to attend ABI’s 19th Annual Southwest Bankruptcy
Conference, which will be held Sept. 8-10 at the Four Seasons Resort in
Las Vegas. An outstanding faculty of judges, academics and industry
professionals will examine timely bankruptcy topics at workshops that
include four tracks of concurrent programming: Consumer, Professional
Development, Financial Advisors and Chapter 11. The conference allows
attendees the opportunity to earn up to 9 CLE/10.5 CPE credit hours,
including 2.5/3 hours of ethics.
ABI's popular Great Debates series will once again be featured at the
Southwest Bankruptcy Conference. The program will include bankruptcy
experts debating the following topics:
· The “Absolute Priority
Rule” is applicable to a chapter 11 plan of
reorganization/liquidation for an individual.
· Third-party releases (or at least
very long injunctions) are appropriate provisions in a corporate chapter
11 plan of reorganization/liquidation.
· A permissible alternative treatment
of a secured creditor’s claim pursuant to Bankruptcy Code
§1129(b)(2)(a) pre-empts a secured creditor’s right to
credit-bid, pursuant to §363(k), if an asset sale is proposed as
part of a debtor’s plan
Sessions at the conference also include:
· Residential Foreclosures
· Impact of Supreme Court Cases in
Bankruptcy
· Is Individual Chapter 11 Just a
Chapter 13 on Steroids?
· Ethical Challenges in Representing
Committees
· Rainmaking in the Bankruptcy
Arena
· Financial Statements 101
· Retention and Compensation Issues
in Chapter 11 Cases
· Distressed Sales and Valuation
Methodologies
· Rights, Roles and Remedial Actions
with Respect to Corporate Insiders
· Getting Crammed Up or Down?
· Judicial Roundtable
· Ethics: The Outer Limits of Zealous
Advocacy
Program chairs for the conference are Candace C.
Carlyon of Shea & Carlyon, Ltd. (Las Vegas), Scott
F. Gautier of Peitzman, Weg & Kempinsky LLP (Los Angeles)
and Jeffrey N. Pomerantz of Pachulski Stang Ziehl &
Jones LLP (Los Angeles). The Judicial Chair is Bankruptcy Judge
Gregg W. Zive (Reno, Nev.), and the sponsorship chair
for the conference is Jeff Nerland of CRG Partners Group LLC (Santa Ana,
Calif.).
For a complete list of sessions and speakers at the Southwest Bankruptcy
Conference, please visit http://www.abiworld.org/SW11/schedule.html.
For more information on the Southwest Bankruptcy Conference, please call
703-739-0800 or visit http://www.abiworld.org/SW11.
###
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
13,000 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 http://www.abiworld.org/conferences.html.
Small Business Filings E-Discovery and Hot Topics in Bankruptcy Litigation Among Issues to be Discussed at ABIs Mid-Atlantic Bankruptcy Workshop
Contact: John Hartgen
703-894-5935
[email protected]
SMALL BUSINESS FILINGS, E-DISCOVERY AND HOT
TOPICS IN BANKRUPTCY LITIGATION AMONG ISSUES TO BE DISCUSSED AT
ABI’s MID-ATLANTIC BANKRUPTCY WORKSHOP
May 25, 2011, Alexandria, Va. —Bankruptcy judges
and leading practitioners from the Third and Fourth U.S. Judicial
Circuits will head the faculty for ABI’s Seventh Annual
Mid-Atlantic Bankruptcy Workshop, to be held Aug. 4-6 at the Hotel
Hershey in Hershey, Pa. More than 250 attendees are expected to take
part in the event, which brings together this region’s top
insolvency professionals for three days of current developments and
networking, with the opportunity to earn 7 hours of CLE/8 hours of CPE
credits, including 1 hour of ethics.
Program co-chairs for the Mid-Atlantic Bankruptcy Workshop are
Edward T. Gavin of NHB Advisors (Wilmington, Del.),
Linda V. Donhauser of Miles & Stockbridge, PC
(Baltimore) and Frank A. Monaco Jr. of Womble Carlyle
Sandridge & Rice PLLC (Wilmington, Del.). The judicial co-chairs for
the workshop are Bankruptcy Judges Rosemary Gambardella
(D. N.J.; Newark), Kevin Gross (D. Del.; Wilmington)
and Kathryn Preston (S.D. Ohio; Columbus).
Topics to be discussed at the Mid-Atlantic Bankruptcy Workshop
include:
· Proxies, E-mail and the Rules of
the Road
· Anything but Bankruptcy, Redux
· When Creditors Overreach: Tales of
Bad Faith
· Hot Topics in Bankruptcy
Litigation
· Post-Confirmation Issues
· Financial Advisor Issues
· Young and New Bankruptcy
Practitioner Case Study
· Examiners: Their Use, Misuse and
Creative Applications
· Analog Trouble in a Digital World:
E-discovery Issues
· Jaunty Judicial Debates
To view a full schedule and list of speakers at the Mid-Atlantic
Bankruptcy Workshop, please click the following link: http://www.abiworld.org/MA11/schedule.html
For more information about the Seventh Annual Mid-Atlantic Bankruptcy
Workshop, call ABI at (703) 739-0800 or visit http://www.abiworld.org/MA11.
###
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
13,000 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 http://www.abiworld.org/conferences.html.
New Commission to Explore Overhauling Chapter 11 Detailed in ABI Journal Article
Contact: John Hartgen
703-894-5935
[email protected]
NEW COMMISSION TO EXPLORE OVERHAULING CHAPTER 11 DETAILED IN ABI JOURNAL ARTICLE
May 31, 2011, Alexandria, Va. —A new American
Bankruptcy Institute (ABI) commission will explore overhauling chapter
11 of the Bankruptcy Code, according to a column featured in the June
edition of the ABI Journal. In “Commission to Explore
Overhauling Chapter 11,” authors ABI Chairman Robert J.
Keach of Bernstein Shur (Portland, Maine) and Albert
Togut of Togut, Segal & Segal LLP (New York) provide an
overview of ABI President Geoff Berman’s
initiative to study and recommend changes to chapter 11.
“It has been more than 30 years since the enactment of the
Bankruptcy Code, and there is a growing view that the current law needs
an overhaul,” the authors wrote. Keach and Togut pointed to
feedback stemming from ABI’s “Chapter 11 at the Crossroads:
Does Reorganization need Reform?” that took place in 2009.
“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,” according to the authors. “Since the
Code’s enactment, there has been an explosion in the use of
secured credit, placing secured debt at all levels of the capital
structure and trumping any long-term reorganization for the benefit of
existing shareholders.”
Berman has tasked Keach and Togut to help assemble a roster of chapter
11 practitioners, academics and bankers to study possible business
bankruptcy law reforms. The commission will hold hearings nationwide to
hear and collect data and opinions on various issues related to chapter
11. “The final result will be a comprehensive report,” Keach
and Togut wrote, “part blueprint for reform and part catalog of
open issues and current options, to be considered in updating the
bankruptcy laws.” While the work of the commission will likely be
a multi-year effort, the authors said that the commission’s aim is
to “do the work that Congress will require to change the
law.”
To obtain a copy of “Commission to Explore Overhauling Chapter
11,” published in the June edition of the ABI Journal,
please contact John Hartgen at 703-894-5935 or via email at [email protected].
###
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 nearly 13,000 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 http://www.abiworld.org/conferences.html.
New Database Provides Comprehensive Information on Cross-Border Bankruptcy Proceedings
Contact: John Hartgen
703-894-5935
[email protected]
NEW DATABASE PROVIDES COMPREHENSIVE INFORMATION ON CROSS-BORDER BANKRUPTCY PROCEEDINGS
June 30, 2011, Alexandria, Va. — The American
Bankruptcy Institute and INSOL International are pleased to announce the
launch of the chapter 15 database found at http://globalinsolvency.com/chapter15.
The new website contains more than 60 recent chapter 15 cases with the
full text of judicial opinions and summaries of the main issues
presented, organized by U.S. judicial circuit. Also included are
daily news headlines about the latest developments in chapter 15 cases,
commentary and analysis about trends in the law, as well as the full
text of the chapter 15 statute and its complete legislative
history.
Chapter 15 was established by the Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005 to allow a representative of a corporate
bankruptcy (insolvency) proceeding outside the U.S. to obtain access to
the United States courts. The statute allows cooperation between the
United States courts and the foreign courts, as well as other
authorities of foreign countries involved in cross-border insolvency
cases.
The site is a unique and valuable resource for cross-border
practitioners who need to quickly find chapter 15 material including the
Bankruptcy Court, District Court and Court of Appeals levels. Case
materials will be updated regularly by a team of restructuring
professionals at Paul, Weiss, Rifkind, Wharton & Garrison led by
Claudia Tobler. Visit the site today at www.Globalinsolvency.com/chapter15.
###
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
13,000 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 http://www.abiworld.org. For
additional conference information, visit http://www.abiworld.org/conferences.html.
ABIs Bankruptcy 2011 Views from the Bench Conference in September to Feature 19 Bankruptcy Judges
Contact: John Hartgen
703-894-5935
[email protected]
ABI’s “BANKRUPTCY 2011: VIEWS FROM THE BENCH” CONFERENCE IN SEPTEMBER TO FEATURE 19 BANKRUPTCY JUDGES
July 18, 2011, Alexandria, Va. — Nineteen
bankruptcy judges and top practitioners from around the country will
participate at the American Bankruptcy Institute’s
“Bankruptcy 2011: Views from the Bench” program on Sept. 16
at The Georgetown University Law Center in Washington, D.C.
David R. Kuney of Sidley Austin LLP (Washington, D.C.)
is the program chair for the conference. Attendees will have the
opportunity to earn 7.0/8.4 hours of CLE/CPE credits, including 1.0/1.2
hours of ethics.
Panel sessions at “Views from the Bench” include:
· Sales in Bankruptcy: Is Everything
Now a Sale?
· Intercreditor Issues
· Avoidance Actions
· Mid-Market Dilemmas
· Confirmation: Hot Cases
Roundtable
· Ethics Committee
For a full list of session speakers, please visit http://www.abiworld.org/GT11/schedule.html
Lunch at the program will provide attendees a unique opportunity take
part in one of three smaller break-out sessions with facilitators
leading discussions from the earlier sessions, including 'Sales in
Bankruptcy: Is Everything Now a Sale?,' 'Intercreditor Issues' and
'Avoidance Actions.' In addition, attendees will receive a complimentary
copy of Collier’s 2011 Portable Pamphlet, which includes the full
text of the Bankruptcy Code, Federal Rules of Bankruptcy Procedure and
Federal Rules of Evidence. The book also includes text of additional
statutory provisions.
For more information on the “Views from the Bench”
conference, please be sure to visit http://www.abiworld.org/GT11.
###
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 13,000 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 http://www.abiworld.org/conferences.html.
ABI Journal Article Explores Whether the Distressed Industry is Shrinkingor Shifting
Contact: John Hartgen
703-894-5935
[email protected]
ABI JOURNAL ARTICLE EXPLORES WHETHER THE DISTRESSED INDUSTRY IS SHRINKING—OR SHIFTING
July 28, 2011, Alexandria, Va. — An article in
the July/August edition of the ABI Journal finds that the
turnaround industry is changing more in focus rather than size. In
“Is the Distressed Industry Distressed,” author
Kenneth R. Yager II of MorrisAnderson (Chicago) writes
that despite rumors that the distressed industry is shrinking,
“the overall distressed industry is still growing, albeit heavily
fueled by international growth.”
The biggest change that Yager identifies since the Bankruptcy Code was
implemented in 1978 has been the change in focus from plans of
reorganization (POR) to the new era of transactions. “While for
decades hardly anyone was interested in buying a broken company, today
competitive § 363 sales are common, as are debt sales or trades and
asset sales,” according to Yager. Rather than trying to fix
companies so that they can be sold, Yager pointed out that turnaround
professionals are increasingly facilitating or managing a distressed
company through a sale or liquidation transaction or alternatively to
maximize value on behalf of a new owner. “This shift is pushing
crisis managers to become much more like performance improvement
consultants,” Yager wrote.
With less of a focus in bankruptcy on PORs, Yager said that the
turnaround industry is evolving to become more open to other skill sets.
“Turnaround firms have two main options in positioning themselves
within the changing field: seek to become larger, or adapt to a
particular niche,” Yager wrote. While larger firms continue to
grow internationally and focus on large company work, Yager said that
smaller firms “need to compete instead on expertise by developing
a narrower focus, building a reputation for specific types of services
in a small number of key industries.”
The shift in focus from PORs to transactions will have a permanent
impact on the turnaround industry, according to Yager, by calling for a
new level of specialization. “The jack of all trades [bankruptcy
practitioner] is becoming a low card in the industry’s
deck.”
To obtain a copy of “Is the Distressed Industry Distressed,”
published in the July/August edition of the ABI Journal, please
contact John Hartgen at 703-894-5935 or via email at [email protected].
###
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 nearly 13,000
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 http://www.abiworld.org/conferences.html.