Companies May Seek to Sidestep New Bankruptcy Code

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00002717-companies-may-seek-to-sidestep-new-bankru/

U.S. companies heading for bankruptcy may be filing sooner than expected this fall in order to sidestep tough new revisions in the bankruptcy code that take effect Oct. 17.

The new rules, signed into law in April as part of a bill to tighten personal bankruptcy filings, place limits on the extensions a debtor may receive to file exclusive plans of reorganization and the time a debtor may take to assume or terminate commercial land leases. It also severely restricts key employee retention programs — bonuses paid to executives to keep them from jumping ship — among other measures.

And though the buoyant economy means fewer companies are in dire straits, these restrictions have the handful of companies already struggling to stay afloat warning they may file for protection — from the new bankruptcy code.

For this complete story, please visit Companies May Seek to Sidestep New Bankruptcy Code.

Companies May Seek to Sidestep New Bankruptcy Code

Unknown Author

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