Recent Developments

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Business Bankruptcy Issues Recent Developments

Chapter 11 Cases: Using The Internet To Keep Track Of Case Developments

A fairly recent phenomenon, especially in large Chapter 11 bankruptcy cases, is the special website designed to help creditors and others keep track of developments in a particular reorganization case.  Among active cases right now, for example, you can follow the latest activity in the Delphi Chapter 11 case, the Refco bankruptcy, and the Delta Airlines case.  These websites generally have information about the attorneys representing the company and the creditors’ committee, an electronic docket of pleadings filed in the case, access to a proof of claim form, and announcements about major events in the case.  

Many companies in Chapter 11 reserve a section of their corporate website for updates on their reorganization efforts, and they often make pleadings and other documents available there.  Adelphia is just one example.

Regardless of whether a special website has been created, you or your attorney can also obtain access to the pleadings and other documents filed in a Chapter 11 case (and any other type of bankruptcy case) through the relevant bankruptcy court’s PACER system.  Another system, called Case Management/Electronic Case Files or CM/ECF, typically is open only to attorneys and other bankruptcy professionals with a need to file pleadings in a bankruptcy case.  Both services require pre-registration and payment of downloading or other fees where applicable.

Business Bankruptcy Issues Recent Developments

Will The New Bankruptcy Law Affect Your Business?

On October 17, 2005, the most significant revision to U.S. bankruptcy law in a generation took effect.  If you followed the media’s coverage of the new law before it became effective, you could easily have assumed that the changes were aimed only at consumers filing bankruptcy to get rid of credit card debt.  There is no question that the new law, called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (bankruptcy lawyers just call it BAPCPA), was aimed at, and affects most significantly, individual consumers.  David L. Rosendorf of Kozyak Tropin & Throckmorton, P.A., in conjunction with the American Bankruptcy Institute, maintains an entire blog devoted to the new law’s changes and how it is being implemented.  His blog has a natural focus on those consumer changes.

However, the surprising news is that the new bankruptcy law changes also contained a host of provisions that will affect businesses.  Many bankruptcy lawyers (this one included) think the law will make it more difficult for some businesses to reorganize, which could end up reducing recoveries for unsecured creditors.  That said, other provisions in the new law benefit certain unsecured creditors.  For an overview of how the new law will affect businesses and their creditors, look here or here — and stayed tuned.