Respondents Split over Bankruptcy Courts Obligation to Honor a Debtors Request to Convert from a Chapter 11 to Chapter 7 Liquidation According to Latest ABI Poll
RESPONDENTS SPLIT OVER BANKRUPTCY COURT’S OBLIGATION TO HONOR A DEBTOR’S REQUEST TO CONVERT FROM A CHAPTER 11 TO CHAPTER 7 LIQUIDATION, ACCORDING TO LATEST ABI POLL
February 20, 2007, Alexandria, Va. — Respondents in a recent American Bankruptcy Institute online poll were divided over the question of whether a bankruptcy court is obligated to honor a chapter 11 debtor’s request to convert its case to a chapter 7 liquidation, even after the debtor met the standards of §1112(b)(4). Thirty-three percent of respondents disagreed that a bankruptcy court was not obligated to honor a conversion request, even after the debtor met the standards of §1112(b)(4), if it was not in the best interests of all stakeholders in the proceeding. Eight percent “disagreed somewhat,” while 25 percent “strongly disagreed.”
Thirty percent of respondents agreed however, that the bankruptcy court is not obligated to honor a conversion request, with 11 percent “agreeing strongly” and 9 percent “somewhat agreeing.” The final third of respondents – 34 percent – did not know or had no opinion.
ABI members and the public were welcome to submit their response to the statement: “A bankruptcy court is not obligated to honor a chapter 11 debtor’s request to convert its case to chapter 7, even after the debtor meets the standards of §1112(b)(4), if it is not in the best interests of all stakeholders” The ABI Quick Poll was open for voting from Feb. 9 - 15.
ABI’s weekly 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 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.