LEAN Lawyer Peter Califano Helps Lead National Effort to Amend the Bankruptcy Code.
Bankruptcy Venue Reform Bill Introduced in Congress
On January 8, 2018, Senators John Cornyn (R-TX) and Elizabeth Warren (D-MA) introduced a bill (S. 2282) that would rebalance how Chapter 11 bankruptcy cases are distributed throughout the country, by eliminating the state of incorporation for commencing a bankruptcy case, and instead, require corporate debtors to file where they have a principal place of business or principal assets are located. It is believed that the change in law would be favorable to equipment lessors by insuring that local debtors are reorganized in local courts, that are in the best position to apply and enforce the parties’ lease agreement. Peter has been actively working on this issue since 2011, at which time he testified before a House panel on the matter. A copy of S. 2282 is available at www.congress.gov.