Bankruptcy Prof. Ralph Brubaker Takes Apart Absolute Priority Rule Narrow View

Here’s the background:

On Nov 8 the LACBA is doing an evening debate on the Absolute Priority Rule in Individual Chapter 11 Cases, with participating bankruptcy judges Albert, Ahart, Clarkson and Kwan.  Here’s an interesting update —

Professor Ralph Brubaker of University of Ill. School of Law yesterday published a blistering deconstructive analysis of the narrow view interpretation of the Absolute Priority Rule as it applies to individual chapter 11 debtors at 32 No. 10 Bankruptcy Law Letter 1 entitled, The Absolute Priority Rule for Individual Chapter 11 Debtors: To Be or Not to Be?  It is officially published on Oct. 15, 2012 (but appears on Westlaw now).  He obliterates the narrow view and opines that the 9th Cir. BAP’s In re Friedman was spot on (way to go Scott Clarkson by the way).

It is a magnum opus on the misconceptions being held by those asserting the narrow view, and calls those who adopt the narrow view as having invented a new canon of statutory interpretation called the “Jam it to the Debtor Good and Hard” Canon.  Anyone who knows Brubaker’s work and background will appreciate the significance of this article.  Brubaker is one of the leading authors of Bankruptcy Law textbooks in the nation.

Prof. Brubaker’s article is a MUST READ for anyone wanting to understand the debate.