Bankruptcy Commission Exploring Major Overhaul of Chapter 11 Code
Posted Dec 3, 2012 1:41 PM CST
By Stephanie Francis Ward
An American Bankruptcy Institute commission expects that labor and benefits will be key issues in the Chapter 11 code overhaul, Reuters reports.
The group plans to issue a report of its recommendations in 2014. Approximately six public hearings are expected to take place in 2013.
"We'll be hearing from both labor and management about the way the bankruptcy code treats collective bargaining agreements, pension issues and the like," Robert Keach, the commission’s co-chairman said.
The current code was set up in 1978. At the time, Reuters reports, distressed investing and derivatives were not as common.
Lenders have also voiced their concerns, largely regarding secured credit. In October, Lee Shaiman, a managing director at the Blackstone Group's GSO Capital Partners, told the commission that significant rule changes could "seriously impair the functioning of the capital markets and thus harm businesses both in and out of bankruptcy."