Article WSJ Pro Bankruptcy

Viewpoint: Congress Should Codify the One-Day Bankruptcy

In this article, Kirkland partner Jonathan Henes considers codifying “one-day bankruptcy” cases to streamline the chapter 11 filing process in response to the COVID-19 pandemic.

“During the past 15 months, three companies—FullBeauty Brands Inc., Sungard Availability Services and Sheridan Holding Company I LLC—have confirmed their respective prepackaged chapter 11 plans within 24 hours of commencing a bankruptcy case. These “one-day bankruptcy” cases enabled the companies to fix their capital structures without any impact on vendors, customers, employees or retirees. This process should be codified, as it meets the goals of the bankruptcy code, eases the burden on bankruptcy courts, and is a net positive for companies, their employees and other stakeholders.”

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