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Members criticize venue-shopping in corporate bankruptcies; plan legislative fix
Summary
Several members and witnesses agreed at the House Judiciary subcommittee hearing that forum-shopping—creating or moving shell affiliates to file in favored districts—undermines bankruptcy credibility; sponsors signaled plans to press a Bankruptcy Venue Reform Act to require filing where a company actually does business.
Members of the House Judiciary subcommittee and witnesses said corporate ‘‘venue shopping’’ in chapter 11 filings has eroded trust in the bankruptcy system and that Congress should consider statutory changes to restrict forum shopping.
Representative Zoe Lofgren and other members cited high-profile corporate cases…
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