American Bankruptcy Institute Update

August 23, 2005

In This Issue

Highlights

Initiatives to Promote Savings from Childhood Catching On

Three weeks shy of his first day of kindergarten, Austin Sambrano is the only person in his family who has a savings account. Living with his parents and older brother in a trailer park near Pontiac, Mich., he is part of an experiment called the SEED Initiative that is opening investment accounts for children in an effort to ensure them a college education—and teach their families the habit of putting aside money for the future, the Washington Post reported Saturday.

The $800 deposited in his name places the rambunctious, blond 5-year-old at the leading edge of a new wave of thought about how to create wealth, curb poverty and improve the abysmal savings rate among Americans, particularly those who are poor. The idea is to give newborns or young children a miniature version of what affluent families have long provided their offspring: a trust fund. To induce parents to save, families deposits are matched if they add to the fund. Read the full story.

Debtors in Rush to Bankruptcy as Change Nears

Rushing to beat an October deadline, when the biggest overhaul of the bankruptcy law in a quarter century goes into effect, rising numbers of Americans have filed for protection in the four months since the law was changed, seeking to have their debts erased, the New York Times reported Sunday.

Since President Bush signed the new law in April, bankruptcy filings have jumped, particularly in the heartland. Filings in the four months through July are up 17 percent this year over last in Cleveland, 14 percent in Milwaukee and 22 percent in northern Iowa, according to court filings, matching similar patterns in the Midwest and parts of the South and rural West.

Nationwide, bankruptcy filings for April, May and June were up by 12 percent over the same period last year, according to LexisNexis. The rise is coming after bankruptcy had leveled off and even started a slight decline last year. Read the full story.

Don’t Miss “Best of New York Bankruptcy Conference”!

How do you put an insolvent chapter 11 debtor to rest? What are your alternatives if you cannot confirm a “normal” plan? Find out at ABI’s “Best of New York” Bankruptcy Conference at 1:00 p.m. on August 31, 2005.

This audio conference will explore both traditional and non-traditional ideas including case dismissal, entry of a “bifurcation order,” a “virtual” chapter 7 proceeding in the chapter 11 proceeding, taking a “shot” at operating an administratively insolvent chapter 11 proceeding without a bifurcation order, and confirmation of a plan for an administratively insolvent estate. The program features Judge Allan L. Gropper and attorneys Scott L. Hazan, Andrew A. Kress, Deirdre A. Martini and Joseph Samet. Visit ABI World for more information and to register for this timely event.

The “Best of ABI” series brings the highest-rated sessions from each ABI conference right to your office.

Register Now for ABI’s New Investment Banking Program

An “all-star” cast of industry leaders will play the roles of the major constituents as they work through a case study in this day-long program. In the new format and location, the 2005 ABI Investment Banking Program will offer a unique approach to understanding the role of investment bankers in insolvency and restructuring contexts. See how creditor and debtor dynamics affect a case as the players seek the highest value for an insolvent company. Join us for this year’s program, to be held in Las Vegas at the Four Seasons Hotel, September 8–9, 2005.

Moderators and Program Co-chairs:

  • James D. Decker, Houlihan Lokey Howard & Zukin
  • Peter S. Kaufman, Gordian Group LLC

“Representing” Parties-in-Interest:

  • Board of Directors: Laura Davis Jones, Pachulski, Stang et. al
  • Debtor/Management: William K. Snyder, Corporate Revitalization Partners LLC
  • Trade Creditors: Peter M. Gilhuly, Latham & Watkins
  • Senior Lender: Mitchell E. Drucker, CIT Group Inc.
  • Private Equity Investor: Joel B. Piassick, Harbert Management
  • Bondholders: Jeffrey S. Sabin, Schulte Roth & Zabel LLP
  • CRO: Rebecca A. Roof, AlixPartners LLC
  • U.S. Trustee: Ilene J. Lashinsky, Region 14, Arizona
  • Judge: Hon. Wesley W. Steen, S.D. Texas

Register today!.

London Calling: ABI’s International Insolvency Symposium

ABI’s first program in Europe, to be held September 23, 2005, in London, at the renowned Savoy Hotel, will bring together top international speakers to discuss the issues of the moment in international insolvency and restructuring. The event has attracted significant support from the industry’s leading professional firms in the United States and Europe.

Sir Gavin Lightman, Chancery Division High Court of Justice, London, will present the keynote address: Views from the Bench. Other symposium sessions will include International Forum Shopping, Hands Across the Pond: Identifying Best Practices, Restructuring Trends in Europe, and Managing an International Reorganisation.

Register today for this exciting international program.

Mark Your Calendar to Participate in the New Bankruptcy Law Series’ Final Webinar!

The Judges’ Perspective—September 22, 2 p.m. EDT

This Webinar will be a special roundtable featuring a panel of leading bankruptcy judges:

  • Second Circuit: Hon. Elizabeth Stong, Eastern District of New York
  • Fourth Circuit: Hon. Douglas Tice, Eastern District of Virginia
  • Fifth Circuit: Hon. Barbara Houser, Northern District of Texas
  • Sixth Circuit: Hon. Steven Rhodes, Eastern District of Michigan
  • Ninth Circuit: Hon. Samuel Bufford, Central District of California
  • Tenth Circuit: Hon. James Starzynski, District of New Mexico
  • Eleventh Circuit: Hon. Mary Grace Diehl, Northern District of Georgia

Register today.

Prepare for the Certification Exam

The new bankruptcy law provides that courts will take into account board certification when awarding attorney fees under §330. The American Board of Certification is offering its exams several times this fall (covering current law). You can prepare for the exams with a handy and affordable CD-ROM prepared by board-certified ABI members. The CD includes materials on consumer bankruptcy, business bankruptcy, ethics and creditors’ rights. Sample exam questions and answers are also included. Member price is $195. Buy the CD-ROM in ABI’s online store!

“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 “Judges’ Roundtable: The New Bankruptcy Law ” archived program is now available online at ABI World.

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.

ABI World Tutorial Highlights Search Engine

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 will 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: