Finance & Banking Committee, 2003 Spring Meeting CLE on
Substantive Consolidation Opinions

The possibility of substantive consolidation lurks in the shadows in many corporate bankruptcy cases. The scope of bankruptcy courts’ equitable power to order consolidation of the assets and liabilities of legally distinct entities is uncertain. Courts have recognized a host of factors on which an order of substantive consolidation may rest. Moreover, the doctrine appears to be evolving. These forces make it difficult to predict whether a particular transaction will justify substantive consolidation if any of the parties seek relief in bankruptcy. But such a prediction is the task of a lawyer asked to render a substantive consolidation opinion.

At the 2003 Annual Spring Meeting, committee members John H. Knight and Richard J. Facciolo, both of Richards, Layton & Finger P.A., presented a program entitled: “Substantive Consolidation Opinions.” The presentation included an exposition of the history of substantive consolidation, an analysis of the tests courts have articulated, and practical tips on how to prepare a substantive consolidation opinion. For a pdf version of Knight and Facciolo’s Power Point presentation, click here.

Finance & Banking Committee News

The Finance & Banking Committee met on April 12, 2003, during the ABI’s Annual Spring Meeting in Washington, D.C. Mark D. Collins of Richards, Layton & Finger P.A., co-chair of the committee, conducted the meeting.

• Call for Topics for the 2003 ABI Winter Leadership Conference
  The Finance & Banking Committee is currently developing its program for the meeting to be held at the 2003 ABI Winter Leadership Conference, December 4-6, 2003, in La Quinta, Calif. If you have a suggestion for a program topic, or are interested in speaking at the meeting, contact Mark Collins, co-chair of the Finance & Banking Committee at collins@rlf.com.



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