After three years of work by numerous bankruptcy professionals, the Commission to Study the Reform of Chapter 11 of the American Bankruptcy Institute (ABI) issued its Final Report and Recommendations (cited below as the ABI Report). The report provides a valuable and comprehensive framework for the discussion of Chapter 11 bankruptcy reform that some believe is needed to keep pace with the changing dynamics of modern Chapter 11 practice. The commission’s goal in producing the report was to “study and propose reforms to Chapter 11 and related statutory provisions that will better balance the goals of effectuating the effective reorganization of business debtors—with the attendant preservation and expansion of jobs—and the maximization and realization of asset values for all creditors and stakeholders.” ABI Report, supra, at 3. According to the commission, this study was undertaken “[i]n light of the expansion of the use of secured credit, the growth of distressed-debt markets and other externalities that have affected the effectiveness of the current Bankruptcy Code.” Id.
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