INSOL International Endorses ABI's Chapter 11 Reform Commission Recommendations for Restructuring Small and Medium-Sized Enterprises
Alexandria, Va. — In a report titled “Restructuring Options forMSMEs and Proposals for Reform,” INSOL International endorsed recommendations proposed by ABI's Commission to Study the Reform of Chapter 11 for restructuring small and medium-sized enterprises (SMEs). “The ABI’s changes appear geared to making the Chapter 11 process more efficient and less expensive for small and medium-sized business enterprises,” according to the report. “The United States Bankruptcy Code presents an excellent framework for small and medium-sized businesses to reorganize (or liquidate); however, too few small and medium business enterprises are taking advantage of Chapter 11 because of the perceived (and real) concerns of cost and complexities of the process.”
“On behalf of the Commission, we are honored by, and pleased with, INSOL’s endorsement of the Commission’s SME proposal,” said Robert J. Keach of Bernstein, Shur, Sawyer & Nelson, P. A. (Portland, Maine) and co-chair of ABI’s Chapter 11 Reform Commission. “We are persuaded that the Commission’s SME proposal is the right approach to making chapter 11 work for SMEs of all shapes and sizes, and that its adoption would make chapter 11 restructuring once again a viable and effective option for SMEs. The proposal could be a critical jobs bill that is already paid for. We look forward to working with all insolvency organizations, including INSOL, and all other stakeholders to make this needed reform a reality.”
The report from INSOL International originated from the organization’s Small Practice Group to look at the insolvency tools available to micro, small and medium enterprises (MSMEs) around the world. “By comparing a number of different jurisdictions’ approaches to restructuring and turnarounds in the MSME sector, the results of this project show that the manner in which MSME insolvency is dealt with in practice is indeed problematic,” writes Adam Harris of Bowmans and president of INSOL International in the introduction of the report.
Last month, Keach testified before the Senate Judiciary Committee on Oversight, Agency Action, Federal Rights and Federal Courts proposing legislation to provide a viable option for small and medium-sized enterprises (SMEs) looking to reorganize under the U.S. Bankruptcy Code. To review his prepared testimony and proposed legislation, please click here.
To review the full list of recommendations by ABI Chapter 11 Reform Commission for SME cases, please click here.
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 12,000 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.abi.org. For additional conference information, visit http://www.abi.org/calendar-of-events.