American Bankruptcy Institute Update

July 14, 2005

In This Issue


Northwest, Delta, Others Face Bankruptcy, Analyst Warns Congress

Continuing financial pressures are likely to force Delta Air Lines and Northwest Airlines to file for bankruptcy within a year, an industry analyst told Congress yesterday, Cox News Service reported. Jamie Baker, a vice president of J.P. Morgan & Co., said that calculations from the credit market show a 55 to 59 percent probability that Northwest and Delta will file bankruptcy within the next 12 months. He also said that Continental Airlines could file for bankruptcy as early as next year and American Airlines could file by late 2007. Baker told the Senate Commerce Committee's aviation subcommittee that high fuel prices were the biggest threat to the large 'legacy' carriers. View witness testimony.

Specter: Nomination Hearings Will Not Affect Asbestos Bill

Senate Judiciary Chairman Arlen Specter (R-Pa.) said yesterday that the committee's work on filling vacancies on the Supreme Court would not slow the progress of asbestos legislation he is co-sponsoring, CongressDaily reported. Despite disagreements over the bill to create a $140 billion asbestos compensation fund, a busy legislative calendar and the forthcoming Supreme Court nomination, Specter said he was still "pressing to bring it up in July." Majority Leader Bill Frist (R-Tenn.) said he had not ruled out July for action on the bill, but had made no decision on timing. Specter will also chair any Supreme Court hearings.

ABI Releases New Edition of Health Care Insolvency Manual

ABI has just released a timely second edition of ABI’s Health Care Insolvency Manual, which includes the significant health care and nonprofit provisions of the newly enacted Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The manual is an expanded and updated version of the first edition published in 1997. Written by leading health care and bankruptcy practitioners, it covers such topics as the structure of different types of health care providers, the unique executory contract issues involved in health care cases, fraud and abuse, Medicare and Medicaid fundamentals and much more. William W. Kannel (Mintz Levin et al, Boston) and David C. Hillman (Verrill Dana, Portland, Maine) are co-editors. The 224-page book is available for purchase here. Member price is $15 and non-member price is $20.

“Best of Annual Spring Meeting” Archived Program Now Available Online

The “Best of ABI” series brings the highest rated sessions from each ABI conference right to your office. The “Best of ASM” archived program is now available online. CLE/CPE credit will be available in certain states. The program features Judges Joan Feeney, David Houston, Linda Riegle and Mary Walrath analyzing the new law.

Register By Tomorrow to Attend ABI’s First Annual Mid Atlantic Bankruptcy Workshop and Save

Make plans to attend ABI’s First Annual Mid Atlantic Bankruptcy Workshop, to be held August 4–6 at the Hyatt Regency Chesapeake Bay in Cambridge, Md. Register by tomorrow and save $50 off the late registration rate. This workshop brings together the region’s top insolvency professionals and judges for three days of hands-on learning, offering up to nine hours of continuing education credit. Topics this year include the latest on retention of professionals, asbestos cases after Combustion Engineering, sales under Section 363, receiverships and other alternatives, professional liability, understanding diverse opinions in the Third and Fourth Circuits and selected ethical issues.

Plenty of networking opportunities are planned including a welcome reception, crab feast dinner, golf, tennis, sailing, sporting clays tournament and much more!

Register online today! 

ABI World Tutorial Highlights Search Engine

Do You Know?

A new online tutorial focuses on the capability of ABI’s search engine. The tutorial features a visual demonstration of how to use the online search engine and locate documents quickly and easily on a particular bankruptcy topic within the thousands of articles, reports, publications, court documents and many other sources available at the ABI World web site. This is the third in a series of tutorials that highlight the many resources and services available at ABI World.

Latest Job Postings at ABI Career Center

Check out the ABI Career Center. The Center is a one-stop site for job seekers and employers in the insolvency community. Career Center resources are available free to both employers and job seekers. New positions are featured daily. The latest listings include: