Thursday, 20 October 2011

USA: the Chapter 11 Bankruptcy Venue Reform Act of 2011

Last year, Professors Armour, Black and Cheffins published a paper titled 'Is Delaware Losing its Cases?' in which they reported on the Delaware courts' loss of market share in shareholder suits involving Delaware companies: see here. Against this background, it is interesting to note that one of the effects of the proposed Chapter 11 Bankruptcy Venue Reform Act of 2011 would be to reduce the situations in which companies incorporated in Delaware are able to file for bankruptcy there. The proposed Act - available here - was introduced in the House of Representatives in July and last month was subject to a hearing by the Committee on the Judiciary: see here. The Bill's progress can be followed here and a statement by its sponsor, Congressman Lamar Smith, is available here.

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