News overview

ABI update 2: First Four Questions

In our last issue we introduced the study of reform of the U.S. Chapter 11 proceeding, initiated by the American Bankruptcy Institute (ABI). The ABI Commission, commissioned with this task, has set up 13 Committees in the U.S. (involving some 150 experts) to analyse and discuss the many pressing issues for such a reform. Via an Advisory Committee on Comparative Law reports will be provided to the ABI Commission regarding business financial distress in several countries, where it seems that their legislation has been inspired by “Chapter 11 as example”.

Professor Bob Wessels is chairing the Committee, and will coordinate all the work with Dr. Rolef de Weijs, University of Amsterdam. Countries involved are Austria, Australia, Belgium, Canada, France, Germany, Italy, Japan, Korea, the Netherlands, PR of China, Spain, England and Wales.

As per December the Advisory Committee on Comparative Law has answered four questions which arose during 2013 within different ABI committees, being:

Q1: The Use of Surcharges in Sales
Q2: The Treatment of IP Licenses in Insolvency
Q3: Financing Options for Insolvent Companies
Q4: The Role of Administrators and Monitors

From a radiobroadcast of 9 December 2013 (click here for the radiobroadcast) it can be taken that the delivery of the final Report has been postponed from April 2014 to the end of 2014. It may therefore be expected that several other questions will cross the ocean.