Partner Russell W. Mills attended Hill Day in Washington, DC on February 24th as part of a delegation from the Commercial Law League of America in support of the Bankruptcy Venue Reform Act of 2019. H.R. 4421 is designed to limit the ability of bankrupt corporations to ‘forum shop’ by choosing a specific and often more favorable venue to file their bankruptcy case. Recent examples of bankruptcy forum shopping are Perdue Pharma, a Connecticut corporation that filed for bankruptcy in New York, and Boy Scouts of America, a Texas corporation that filed in Delaware. The reform bill would require that a bankrupt debtor file in the district of their principal place of business or where their principal assets are located. Attorneys General of 42 states, including Texas, recently supported venue reform.
News | March 30, 2020