ABI Protects Its Own on Fees; Restricts Lenders: Bankruptcy
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The American Bankruptcy Institute, in its 332-page report on recommended reforms in bankruptcy law, offered little in the way of solutions to the high cost of Chapter 11 reorganization where professional fees in large cases can run into the hundreds of millions of dollars.
The more than 20 professors, judges and practitioners on the commission who wrote the report did make recommendations that step on the toes of secured lenders when it comes to some current practices for financing in Chapter 11. For the next several days, we will continue discussing different aspects of the report.