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 SemGroup LP, Tropicana Entertainment LLC, WCI Communities Inc., Linens 'N Things
Inc. and Buffets Inc. are all big 2008 bankruptcies with one thing in common:
their choice of venue. It's no secret that Wilmington, Del., is the
Yankee Stadium of bankruptcy courts.
Companies incorporated in Delaware have the
option to file petitions there or where they are actually based, and usually
they go to Wilmington because the state is widely believed to be accommodating
to debtors and their counsel and has amassed a tremendous amount of case law.
But the House that Biden Built? An interesting blog in The Wall Street Journal Tuesday examined Democratic Vice Presidential candidate Joe Biden's influence on Delaware's dominance in attracting bankruptcy filings. "Most of us in the bankruptcy world believe that Senator Biden is personally responsible for Delaware's domination of big-case bankruptcies," a UCLA bankruptcy professor told the Journal. That may be a stretch -- Delaware's dominance probably has more to do with its experience in handling high-profile bankruptcies, as well as favorable treatment to debtors. Its judges are also well-respected. But Biden has undoubtedly been a supporter of the Delaware bankruptcy system. As the Journal notes, Biden in 2005 stood in the way of a bill proposed by Sen. John Cornyn of Texas that would have limited bankruptcy forum-shopping. We don't really know if that qualifies Biden as the Babe Ruth of the Delaware bankruptcy courts. But during every political season, small things always seem to be blown to heroic proportions. - John Blakeley CategoriesComments
From: synjones,
I have read the above article its good. Synjones
Posted on:
September 29, 2008 5:25 PM
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I have gone through the above article its interesting.I feel that Delaware's dominance probably has more to do with its experience in handling high profile bankruptcies and sort out this problem as soon as possible.
Synjones
http://www.shepelskylaw.com