Proposed U.S. Bankruptcy Rule Changes Spark Debate from LendersDecember 8, 2014 – In The News
Raymond Lyons was quoted in the Reuters article, “Proposed U.S. Bankruptcy Rule Changes Spark Debate from Lenders.” Full text can be found in the December 8, 2014, issue, but a synopsis is below.
Lenders are concerned that investments in broken companies may lose protection under proposed changes to U.S. bankruptcy rules.
A report released by the American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11, laid out hundreds of recommended changes to law.
Members of the commission say reform is fair, and badly needed. They plan to present the recommendations to Congress.
While certain of the recommendations could be imposed now, the bulk of the report will remain for the time being limited to theory, not practice.
Former New Jersey bankruptcy judge, Raymond Lyons, says that if he were still on the bench he would gladly impose some of the recommendations.
He notes that he likes the idea of an “estate neutral,” a position proposed by the commission that, on the request of parties, would be appointed to help parties negotiate a restructuring plan. “That’s an experiment I’d like to see tried out,” Lyons said.