A Measured Response to Critics of Delaware Venue
April 2007
Publication| Bankruptcy & Corporate Restructuring
Some have argued recently that Delawareis no longer the “knee jerk” forum of choice for bankruptcy filings. The argument is that recent Third Circuit rulingson substantive consolidation, the absolute priority rule and “deepening insolvency” make the Southern District of New York the better venue choice over Delaware. As discussed below, these criticisms fail to carefully analyze the state of the law in these three areas. This article will present a fair and balanced analysis of these areas of the law, which it is hoped will assist practitioners in properly advising their clients about the proper venue to file chapter 11 cases.