Shuffling the Deck: The Rebalancing of Creditor Rights Proposed by ABI Commission’s Final Report

August 1, 2015Articles American Bankruptcy Institute Journal

One of the themes of the Final Report and Recommendations released by the ABI’s Commission to Study the Reform of Chapter 11 is the shift in the balance of power between a distressed company and its creditors, as well as the introduction of perceived inequities among creditor constituencies. These shifts have diluted the effectiveness of chapter 11 and driven companies to seek alternatives, which can come at the expenses of creditors and other stakeholders. In response, the Commission Report contains many recommendations that would shift the balance of power away from secured creditors.

Click here to view full article