The increase of big corporations filing bankruptcy reorganization cases in either Delaware or New York, no matter where the headquarters are, has rekindled allegations that a forum-shopping war between the states includes bankruptcy judges engaging in unseemly competition for cases.
“There is a legitimate question, if it is corrupt competition,” says UCLA law professor Lynn LoPucki. His recently released book makes the same controversial assertion, and that has the bankruptcy bar steamed. It has become so common for big corporations to file bankruptcy reorganization cases in either Delaware or New York, no matter where the […]