American Bankruptcy Institute Update

October 13, 2005

In This Issue

Highlights

Legislation Update

Pension Bill, Declared Dead, Might Be Revived In Senate

Staffers and lobbyists say that the reported death of pension legislation is greatly exaggerated, and that the bill might reappear on the Senate floor, CongressDaily reported yesterday. Business lobbyists say that aides, including some from leadership offices, have reached out to them during the recess, indicating that the bill is alive despite an impasse that prompted Majority Leader Bill Frist (R-Tenn.) to announce its demise. The pension bill's sponsors -- Sens. Michael Enzi (R-Wyo.); Health, Education, Labor and Pensions ranking member Sen. Edward Kennedy (D-Mass.); Senate Finance Chairman Charles Grassley (R-Iowa) and Finance ranking member Sen. Max Baucus (D-Mont.) -- reached a stalemate with Sens. Mike DeWine (R-Ohio) and Barbara Mikulski (D-Md.), who sought to strike a provision that would link a company's credit rating to the amount it must pay into its pension fund. Grassley and other sponsors did not want to disrupt the compromise they struck between the two committees' versions.

Figures Question Benefit of U.S. Pension Proposals

Finances at the deficit-ridden agency that insures corporate pensions would be worse over time under legislation designed to fix its problems than if current funding rules were left in place, figures provided to lawmakers by the agency showed on Tuesday.

Until now, the Pension Benefit Guaranty Corp. (PBGC) has not responded to claims -- mainly by congressional Democrats -- that competing bills in the Republican-led House of Representatives and Senate to overhaul pension-funding rules would fall short of fixing its problems, Reuters reported yesterday. The agency is running a $23 billion deficit as big corporations -- mainly in the steel and airline industries -- have defaulted on employee pension plans in recent years. It also faces the prospect this year of possible pension defaults at bankrupt carriers Northwest and Delta. Auto parts giant Delphi Corp. is also in chapter 11 with huge pension liabilities.

House and Senate plans propose to stabilize finances of the PBGC by overhauling company contribution rules and imposing higher premiums. Read the full story.

Delphi Bankruptcy Generating Analysis, Commentary

News of Delphi’s last-minute bankruptcy filing has produced numerous commentaries and analyses.

Click here to read yesterday’s Detroit News editorial.

The Wall Street Journal editorials, “The Oracle of Delphi.” and “Showdown.”

DETROIT BANKRUPTCY CONFERENCE PROVIDES INTENSIVE NEW-LAW EDUCATION

ABI’s Detroit Bankruptcy Conference, "Practice Under the New Bankruptcy Law" brings together the area’s top insolvency professionals for one day of intense learning. The event will be held Nov. 11, 2005, at the Novi Sheraton. Topics include:

  • U.S. Trustee Implementation: Entering, Getting Through and Exiting the Process
  • The Means Test: An In-depth Analysis
  • Chapter 13 Changes
  • What Debtors Get to Keep (and Not): Homestead Exemption; Household Goods; Privacy Issues
  • The New Super-creditor: Domestic Support Changes
  • The New World of Chapter 11: Small Business Rules, Strategies in Real Estate Cases, Lease Rules, Preference and Reclamation Issues and Ethics
  • Tax Changes

Register today at and earn up to 7 hours of CLE credit.

REGISTER NOW FOR ROCKY MOUNTAIN BANKRUPTCY CONFERENCE AND SAVE $50!

Please join us for the Eleventh Annual Rocky Mountain Bankruptcy Conference, to be held January 26–28 in beautiful downtown Denver, Colorado.

The educational program will provide attendees with an interactive learning experience led by a faculty of highly regarded bankruptcy judges and experienced practitioners. The roundtable format emphasizes discussion of relevant insolvency issues among the faculty and the participants.

This conference is an educational opportunity not to be missed! Up to 12 hours of CLE credit, including three hours of ethics, can be earned.

Register today!

2005-06 ABI MEMBERSHIP DIRECTORY PRINT EDITION AVAILABLE FOR SALE

The print edition of the 2005-06 ABI Annual Membership Directory is now available. This 21st edition lists more than 11,000 insolvency professionals, more than ever before, and is a symbol of ABI’s sustained membership growth. The Directory is one of the many benefits of ABI membership and is available exclusively to members. An online version of the Directory is available at the ABI World Web site (www.abiworld.org), which is continually updated. All members will receive a complimentary CD-ROM version of the Directory with their November ABI Journal.

This expanded print edition enables you to capitalize on the depth and diversity of our membership. In addition to indexing each member by geographic area, ABI committee, profession and practice area, there are references to firm size and certification to assist you in identifying colleagues for referrals. Included is a “Multiple Members by Firm” section, which permits you to easily locate all members from a particular law, accounting or turnaround firm. Members are also listed under other locations where they have offices, thus enhancing your ability to easily find bankruptcy professionals nationwide. Also included are e-mail addresses and firm Web site listings. The Endowment section includes guidelines for consideration of Endowment Fund grant proposals. The $55 cost of the printed version includes shipping and handling, Visit the ABI bookstore to order .

ABI WORLD TUTORIAL HIGHLIGHTS DAILY NEWS AND BANKRUPTCY COURT UPDATES

Do You Know?

A new online tutorial shows you how to find daily news stories, information and bankruptcy opinions on ABI’s comprehensive Web site. The tutorial features a visual demonstration of how to locate these documents quickly and easily, and guides you through the navigation process. This is the fourth 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: