< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: 11th hour?

Wednesday, March 09, 2005

11th hour?

This just in, from the ABI:

[...] [T]he bill’s 8-year history of eleventh hour snags may be at hand again. The issue now surrounds a proposed change (in §414) to the definition of “disinterestedness” under §101(14) of the Code, to eliminate the automatic disqualification of investment banking firms from representing a company if the investment bank was previously the underwriter for an outstanding security of the now-bankrupt company. The provision is important to several large investment banking firms that seek exclusion from the per se disqualification rules. A bipartisan pending amendment by Sens. Patrick Leahy (D–Vt.) and Paul Sarbanes (D—Md.), supported by the Securities and Exchange Commission, would strike the provision and restore the automatic disqualification of firms who served as investment banker for any outstanding security of the debtor. Because it is unclear how this vote might break, the leadership has not permitted a vote on this or other pending amendments. As of 8 p.m., it is unclear how or when the stalemate will be resolved. [...]

Strike Two!

UPDATE: Russo has more from the WP at DemocracyGuy