Business Decisions of Liquidating Debtors Should Receive More Scrutiny than Reorganizing Debtors According to Latest ABI Quick Poll
Contact: John Hartgen
BUSINESS DECISIONS OF LIQUIDATING DEBTORS SHOULD RECEIVE MORE SCRUTINY THAN REORGANIZING DEBTORS, ACCORDING TO LATEST ABI QUICK POLL
December 14, 2009, Alexandria, Va.— A majority respondents (51 percent) in a recent ABI Quick Poll agreed that the business decisions of a liquidating debtor are not entitled to the same degree of deference as those of a reorganizing debtor. Thirty-one percent of respondents “strongly agreed” and 20 percent “somewhat agreed.”
Forty-one percent of respondents thought that a liquidating debtor’s business decisions should be entitled to the same amount of leeway as a reorganizing debtor. Twenty-seven percent “disagreed strongly” and 14 percent “somewhat disagreed” that the business decisions of a liquidating debtor are not entitled to the same degree of deference as those of a reorganizing debtor. Five percent of respondents did not know or had no opinion on the issue.
ABI members and members of the public were welcome to submit their response to the statement: “When a DIP is liquidating the business, its business decisions are not entitled to the same degree of deference as those of a reorganizing debtor.”
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 nearly 12,400 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.