Vol 2 (2005) - Issue 5

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Welcoming The American Bankruptcy Institute to the United Kingdom

On Friday 23 September 2005, at The Savoy Hotel in London, the American Bankruptcy Institute (‘ABI’) will host its first conference in Europe. This is a significant event for ABI which is increasingly looking outside the geographical boundaries of the US in response to the increasing globalization of business and finance.

ABI is the world’s largest multi-disciplinary ‘insolvency-related’ organization, with over 11 000 members. Members are drawn from the legal profession, valuers, accountants, bankers and financiers, turnaround professionals and members of the judiciary. The London Conference is the brain child of 2004/2005 ABI President Michael P. Richman, a partner with Mayer Brown Rowe and Maw in NewYork; as co-chair of ABI’s International Committee I was charged with its organization.
I have been attending ABI conferences since 2000 when I attended the ‘Winter Leadership Conference’ (‘WLC’) held in Palm Springs. I was introduced to ABI by former ABI President Keith Shapiro whom I had met at the Jersey Conference of what was then SPI. ABI presented me with an unparalleled opportunity to make friends and develop contacts. The unique feature of ABI is its depth. It is not dominated by ‘big hitters’ or multinational firms but reflects all aspects of its membership. There are thousands of middle-market, middle-America professionals who religiously turn up at the main and regional conferences to share ideas and participate in the ‘Great Debates’ where key issues are fully aired. Attendances at the Annual Spring Meetings (‘ASM’) held in Washington and the WLC, held on the west coast have been steadily increasing such that it is now the norm to get 1000 delegates at the ASM and 800 or so at the WLC. As a result of my work with International Committee and regular attendances at the conferences, I was asked to become a Co-Chair, which I did in 2003. I believe I am the only person outside of North America to hold a committee chairmanship.
ABI is a non-partisan organization founded to provide its members and Congress with an unbiased analysis of bankruptcy issues. It brings its expertise to bear in analysing legislation, appearing before congressional committees and preparing white papers and briefing members of Congress. It is highly respected for its impartiality because it does not lobby and can be trusted to provide a balanced approach. Consequently, ABI does not come to London to ram home the greatness of the American system in the spirit of economic imperialism. It does, however, recognize that a number of countries in Europe are adopting ‘US-like’ systems and it comes to offer its considerable expertise and knowledge of operating in that environment. I have made no secret of my own view that the UK’s Enterprise Act is a fudge and that further consideration should be given to changing to a more ‘debtor-led’ system. It is not, however, the Federal Bankruptcy Code processes that I find admirable but the environment that the US system offers to business, where business people are encouraged to and do openly discuss financial problems and where professionals are regarded as facilitators not undertakers. It’s not all about the debtor either as some would have you believe; creditors do play a full part in the process.
The ABI Endowment Fund was created in 1989 to provide funding for research and education. It has nearly USD 1.5 million in funds contributed by nearly 3000 of its members. Over USD 300 000 has been paid out in awards to scholars conducting research. Recent grant awards address both consumer and business bankruptcy issues and the fund also supports an annual stipend for the Robert M. Zinman Resident Scholar program. Each Zinman Scholar is a leading member of the academic community on leave from full-time teaching to assist ABI in research and educational activities. ABI’s journal, Law Review and many publications together with its online ‘headquarters’ < www.abiworld.org > provides a huge resource of reference works on insolvency and related issues and ABI has recently partnered with INSOL and developed providing links to websites around the globe. The US is often regarded as being insular and inward looking - this is not the case with ABI and the London conference will demonstrate its desire to discuss the controversial issues of the moment and to look to other jurisdictions for insight and ideas.
Apart from addresses from Michael P. Richman, the Immediate Past President, and the current President, John Penn from the Texas law firm of Haynes and Boone, the conference will also hear from Sir Gavin Lightman, a High Court Judge of the Chancery Division who sits in London.