McIntire Professor Testifies on U.S. Bankruptcy Laws before American Bankruptcy Institute Commission
Source Newsroom: University of Virginia, McIntire School of Commerce
Newswise — McIntire Professor David C. Smith testified before the American Bankruptcy Institute’s Bankruptcy Reform Commission during a bankruptcy conference, VALCON 2013, in Las Vegas, Feb. 21, 2013. The commission was convened to study the question of whether there should be a major overhaul of U.S. bankruptcy laws.
Smith, who gave testimony on “Contested Valuation Issues in Bankruptcy,” says that the commission, composed of leading bankruptcy professionals in the field, will study and propose reforms to Chapter 11 and related statutory provisions that would better manage the effective reorganization of today’s business debtors.
Smith’s testimony focused on bankruptcy questions related to academic studies:
1) Are the valuations conducted as part of a Chapter 11 case accurate?
2) Are appropriate adjustments made for the risks faced by distressed companies?
3) Are more empirical studies warranted, and if so, how should these studies be conducted to reveal more about what works and doesn’t work in bankruptcy valuations?
During the conference, Smith also was part of a three-person panel that discussed scholarly updates to the bankruptcy literature.