Proposed Chapter 11 Reforms May Be Bad For Borrowers

Law360, New York (March 13, 2015, 10:38 AM EDT) -- Late last year, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released a report outlining its findings and recommendations. These proposed reforms have been touted by many as a triumph for debtors over secured lenders, which some people believe dictate the terms of modern bankruptcy cases for their exclusive benefit. If certain proposals are accepted and acted on by Congress, borrowers would be pushed into new territory that, in many ways, would be even less responsive to the needs of distressed businesses....

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