| ID |
Name |
Group |
Other |
Code
Sec |
Cross
Ref |
Problem Referenced |
Proposed Solutions |
| NBRC-0019 |
Morten S. Beyer |
President; Morten Beyer and Associates; "Reforming
the Bankruptcy Act," V.2 No. 7 MBA Aviation Oracle (Nov. 1995)(citing
Michael K. Lowry, "Air Watch Report"). |
|
|
|
|
Subject bankrupt air carriers to more stringent
fitness standards prior to discharge. |
| NBRC-0019 |
Morten S. Beyer |
President; Morten Beyer and Associates; "Reforming
the Bankruptcy Act," V.2 No. 7 MBA Aviation Oracle (Nov.
1995). |
|
|
|
A failed management should leave in disgrace and not
be rewarded. Rank and file employees lose their jobs and creditors don't
get paid. Pan Am's senior officers walked away with some $16M while few
others received anything. |
Ban golden parachutes. |
| NBRC-0223 |
Frank R. Kennedy |
Professor, Michigan Law School; former Executive
Director, Commission on the Bankruptcy Laws of the United States
(1973) |
Cover letter discussing various areas of
concern |
|
|
Author provides a list of 30 "Topics for
Consideration by Commission on Bankruptcy Laws." The recommended topic
relating to Chapter 11 miscellaneous issues was: Administration of
insolvent insurance companies, stock brokerage firms, and savings and
loan companies under the Bankruptcy Code. |
None. |
| NBRC-0277 |
Jay M. Goffman |
Attorney |
|
|
|
By permitting companies to restructure without the
high costs attendant to chapter 11, prepackaged chapter 11 cases
("prepacks") can save jobs and maximize the return to creditors and
shareholders. Use of prepacks over the last five years has been limited
by uncertainty. |
Code should be amended to codify the laws and rules
surrounding prepacks so that the use of prepacks might become more
widely understood and used. |
| NBRC-0303 |
Commercial Law League of America |
Commercial Law League of America (CLLA) |
|
|
|
The Commerical Law League of America believes that
the following issue should be considered by the NBRC: What rules should
govern the courts' jurisdiction over the administrative affairs of a
reorganized debtor Under what circumstances should plan modification be
permitted |
The CLLA believes that these issues should receive
moderate priority (no additional details are provided). |
| NBRC-0303 |
Commercial Law League of America |
Commercial Law League of America (CLLA) |
|
|
|
The Commerical Law League of America believes that
the following issue should be considered by the NBRC: Should industry
specific legislation which has been added to the Bankruptcy Code since
1978 be repealed in order to reestablish the historic evenhandedness of
commercial law statutes Also, should "straight liquidations" (i.e.
chapter 11's filed with initial intent to liquidate) be allowed under
chapter 11 Should the Bankruptcy Code be amended to increase meaningful
participation by the unsecured creditor body Should there be a good
faith requirement for filing of chapter 11 cases |
The CLLA believes that the issue of industry specific
legislation should receive top priority. The CLLA has consistently
opposed industry specific legislation and believes that the NBRC should
reexamine the Code with an eye towards reestablishing the
balance. |
| NBRC-0320 |
Robert M. Zinman, on behalf of the Bankruptcy
Institute |
American Bankruptcy Institute ("ABI") |
Numerous position papers, memoranda and research
material |
1110 |
|
None. |
Most if not all industry specific legislation, such
as § 1110 and the farmout legislation, should be repealed except to
the extent that it clarifies non-discriminatory treatment (no additional
explanation is provided). |
| NBRC-0399 |
Jean E. C. Laborde |
Chapter 11 debtor |
|
|
|
The author provides a copy of her testimony before
the NBRC, of which she was only able to present a portion. She states
that as a chapter 11 debtor, she has been the victim of "fraud and
preceived corruption and the inherent injustices in the Fresno
Bankruptcy Court which cost my family and I over $50,000,000.00."
Specifically, she states that the chapter 11 trustee and his attorney
have been involved with "conflict of interest and insider self-dealings
by former corporations. |
Author requests that the NBRC "help to get an
investigation, certified audit or an audit by the General Accounting
Office..." with regards to her experiences with the bankruptcy
system. |
| NBRC-0417 |
Lisa Hill Fenning |
Judge, U.S. Bankruptcy Court, Central District of
California |
|
1129(a) |
362(d)(2) |
According to the author, Chapter 11 isn't working
right, and the main problem isn't a broken statute; it's erroneous
assumptions and, consequently, misguided implementation. Bankruptcy
judges individually and collectively can solve many of the problems by
changing the way they approach chapter 11 cases. We need to think about
the true nature of the proceedings and the proper role of bankruptcy
judges. |
In a series of three articles in the ABI Journal in
July/August 1996, September 1996, and October 1996, the author advances
"three simple, interrelated propositions that can serve as the basis for
the rethinking process: 1) Chapter 11 is mediation, not litigation; 2)
Judges must run chapter 11 cases, because nobody else can; and, 3)
Chapter 11 success is defined in business, not litigation,
terms. |
| NBRC-0456 |
David Baston |
Private citizen, Chairman of the Official Creditors
Committee of Limited Partners and co-investor in a company which filed
for reorganization under Chapter 11. |
Letter from Joseph Patchan to The Hon. Russ Feingold
dated 10/29/96 and letter to The Hon. Russ Feingold from David Baston
dated 12/3/96. |
|
|
Author is co-investor in a company which filed for
reorganization under Chapter 11 and Chairman of the Official Creditors
Committee of Limited Partners which was appointed by the United States
Trustee in that case. Author and other investors in the company are
upset and feel not enough was done to protect their interests,
especially that debtor was allowed to remain in possession instead of
the appointment of a trustee to run the business. |
Something should be done to protect investors, "to
show that someone in the "system" is on their side." |
| NBRC-0513 |
Richard S. Toder |
Attorney |
|
1104(c) |
|
Author is a mediator in the Southern District of New
York Mediation Program and writes to advocate the use of court ordered
mediation in bankruptcy cases. |
The Code should be modified to make the appointment
of an examiner discretionary with the Court, based upon a finding that
an examiner is appropriate under all the circumstances. Further, the
Court should order mediation of the dispute based upon its own motion,
or upon a motion by any party in interest, including the U.S.
Trustee. |
| NBRC-0626 |
Richard G. Lugar |
U.S. Senator |
Letter dated 4/5/97 from Dr. and Mrs. George E.
Nomikos to Senator Richard Lugar. |
|
|
Constituents of Senator Lugar, Dr. and Mrs. George E.
Nomikos, write of a contractor who was paid in advance for work on their
house, never finished it, then filed bankruptcy when they sued and
obtained a judgement. This was his pattern of practice. They claim there
were inconsistencies in the contractor's bankruptcy filing, and they
filed several objections, but were told that the court could not
evaluate the merits of the case unless they filed an "Adversary
Complaint" with a $120 filing fee, which they felt they would have
needed an attorney to do. They are angry that the contractor could
engage in this pattern of behavior in the first place, and that he could
avoid his obligations while having enough money to repay his
debts. |
The Senator's constituents write: "We look forward to
your serious efforts in addressing this issue, both in terms of our
specific situation, and in more general terms of the badly needed reform
of the U.S. Bankruptcy Code." |
| NBRC-0690 |
Harvey R. Miller |
Attorney, Weil, Gotshal & Manges LLP |
|
1126 (b)(1) and (2) |
1145 (a)(1) |
"Sections 1126(b)(1) and 1145(a)(1) of the Bankruptcy
Code now require compliance with applicable nonbankruptcy law, i.e.,
federal, state and local laws, to solicit acceptances of a prepackaged
or prearranged plan of reorganization." "As a result, what now exists is
a bifurcated, cumbersome and needlessly expensive system of disclosure
regulation for securities issued under confirmed Chapter 11
plans." |
"It is recommended that the National Bankruptcy
Review Commission consider amendments to the Bankruptcy Code which would
create uniform disclosure standards in all bankruptcy cases." Specific
amendments are also given. |
| NBRC-0691 |
Luc A. Despins & Dennis F. Dunne |
Attorneys, Kirkland & Ellis |
|
1124 |
|
"[T]he deletion of section 1124(3) missed the mark
and was not precisely tailored" to correct the problems caused by the
New Valley case, and has caused its own problems. |
Expressly provide that section 502 (b)(2)'s
disallowance of post-petition interest will ot apply in cases where
equity retains an interest...under the plan on account of its
pre-petition equity ownership." |
| NBRC-0701 |
Jack M. Zackin |
Bankruptcy Law Section, New Jersey State Bar
Association |
Memorandum from NJSBA Bankruptcy Law Section,
Comments regarding various Chapter 11 Proposals dated May 9,
1997. |
|
|
Author is forwarding a Memorandum of comments by a
special committee of the Bankruptcy Law Section of the New Jersey State
Bar Association with respect to several proposals put forward by the
Chapter 11 and Small Business Working Groups. |
|
| NBRC-0710 |
Franklin Feldman |
Attorney |
Exhibit A - a collection of letters from and to
author concerning the enforcement of a Guarantee and legal
representation of the company; and, Exhibit B - exchage of letters
between author and Michael L. Cook concerning a request for legal fees
and a threat of sanctions. |
1125(b) |
|
Author invested in company which had filed chapter 11
but which got a new president and CEO whom author thought could turn the
company around. Author later became convinced that the CEO had acted in
his own best interests, and not those of the company, when the company
had to file chapter 11 two more times. Author petitioned for the
appointment of a trustee or examiner and was denied, and has been
actively involved in the legal procedings of the bankruptcy. Author
writes with suggestions for changes in the bankruptcy code based on his
experience. |
If the cramdown provisions of the Bankruptcy Code are
to be implemented, a reasonable number of security holders, who it is
claimed, voted for the Plan should be required to testify to confirm
that they, in fact, received the Disclosure Statement prior to being
solicited for their vote, as contemplated by Section 1125(b) of the
Bankruptcy Code. |
| NBRC-0736 |
David J. Frankel |
Associate County Attorney |
|
724(b) |
|
At the Commission's discussion on the proposal to
amend Code Section 724(b), author was concerned, as were members of the
workgroup, with the repective priorities of "teachers" v. "brick-layers"
v. "Chapter 7 legal fees". Author was struck by the "substantially
equivalent weight" of the arguments on behalf of each group. |
"Perhaps...a fair resolution would be to allow each
group to whare the same priority, with distribution to be made, if
necessary, pro-rata." |
| NBRC-0951 |
Leslie Carbine, Chris Peterson and Melisa
Hills |
Controller, Senior Credit and Collections Specialist,
and Credit and Collections Specialist, respectively, BRIO
Corporation |
|
|
|
Authors write to inform the commission that they have
written their senators and congressman to ask their support for the
changes listed below. |
1) reclamation should be extended from 10 daays to 60
days; 2) Unsecured creditors need to be better represented on the
Creditor's Committee and be more involved in the Bankruptcy prodeedings;
3) Debtors should be curtailed from filing Chapter 11 preemptively
against the creditors; 4) There should be a cap on the aggregate amount
allocable to professional fees of no more than 10% of the debtor's
assets, so that these fees no longer absorb the bulk of the assets to
the detriment of the creditors; and, 5) Creditors who ship a Chapter 11
post-petition debtor should receive priority payment status. |
| NBRC-1009 |
Harold Smick Jr. |
Chairman of the Board of Smick Lumber; Member
National Lumber and Building Materila Dealer's Association (NLBMDA)
Government Affairs Committee; Chair, subcommittee on
Bankruptcy |
|
|
|
Written copy of testimony of B. Harold Smick Jr. on
behalf of The National Lumber and Building Material Dealers Association
(NLBMDA). |
|
| NBRC-1069 |
John E. Burke |
Vice President, Credit & Collections, Corporate
Finance & Control, Nestle |
|
|
|
Form letter from trade creditors - see prior entries
in NBRC-1069. |
|
| NBRC-1069 |
Douglas R. Ernst |
Controller, Sales Division, Pillsbury |
|
|
|
Form letter from trade creditors - see prior entries
in NBRC-1069. |
See file. |
| NBRC-1069 |
Rita M. Childers |
Director, Credit Management, Ralston Purina
Company |
|
|
|
Form letter from trade creditors - see prior entries
in NBRC-1069. |
See file. |
| NBRC-1147 |
Loretta E. Cline |
President/CEO, Kim Originals
International |
|
|
xx |
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Debra Brassieur |
Corporate Credit Manager, GUND |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Sandra Lewis |
Eberting Associates |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Susan Holsapple |
CEO, Wood Apple, Inc. |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Nancy J.K. Abbott |
Credit Manager, North American Bear Co.,
Inc. |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Sheryl S. Mott |
Director of Credit Services, The AT-A-GLANCE
Group |
|
|
|
This undated letter is a form letter by business
suppliers/creditors who complain about certain bankruptcy practices. See
other letters in NBRC-1147 file. |
|
| NBRC-1147 |
Bonnie Housch |
Credit Manager, Wilton Armetale |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Susan Alexander |
Credit & Customer Services Manager, Stephen
Lawrence |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Martin Weinberg |
Credit Manager, Geneva International
Corporation |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Marcia Olson |
Credit Services Manager, Sullivan, Inc. |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|
| NBRC-1147 |
Darlene Arno |
Credit Manager, Possible Dreams Ltd. |
|
|
|
This is a form letter by business suppliers/creditors
who complain about certain bankruptcy practices. See other letters in
NBRC-1147 file. |
|