ABI Poll-Closely Divided Response on Whether Reorganizaiton Plan Proposals to Disallow Punitive Damages Violate Best-Interests Test
ABI POLL: CLOSELY DIVIDED RESPONSE ON WHETHER REORGANIZATION PLAN PROPOSALS TO DISALLOW PUNITIVE DAMAGES VIOLATE BEST-INTERESTS TEST
May 12, 2006, Alexandria, Va. — Nearly half of the respondents (46 percent) to the most recent American Bankruptcy Institute (ABI) online poll did not agree that chapter 11 reorganization plans proposing to disallow punitive damages across the board are a violation of the best-interests test under §1129(a)(7) of the Bankruptcy Code. Twenty-five percent of the respondents strongly disagreed, and 21 percent “disagreed somewhat” that plans proposing to disallow punitive damages were a violation of the best-interests test.
However, the largest category out of the 158 respondents (27 percent) weighed in that they “strongly agreed” that plans proposing to disallow punitive damages were a violation of the best-interests test. Another 16 percent “agreed somewhat” that it was a violation of the best-interests test for reorganizations plans to propose excluding punitive damages. Eleven percent of respondents did not have an opinion or did not know enough about the issue.
ABI membership and members of the public were welcome to submit their response to the statement “A Ch. 11 reorganization plan that proposes to disallow punitive damage claims across the board violates the best interests test under sec. 1129(a)(7)” for the recent poll that was open for voting from April 28 – May 10.
The ABI 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’s Quick Poll.
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 11,500 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.