This comment analyzes the role of the Securities and Exchange Commission (SEC) in corporate rehabilitation under the present Bankruptcy Act and the proposed New Bankruptcy Act. First, a general understanding of the distinction between Chapter X and XI is necessary. Then Section II examines why the SEC prefers a Chapter X bankruptcy proceeding over a Chapter XI bankruptcy proceeding and how that preference is effectuated. Section III gives a historical review of the major cases in which the SEC forced companies to use Chapter X, and attempts to derive a standard which courts will apply when faced with a debtor that wants to use Chapter XI, and an SEC recommendation for Chapter X. Finally, a critical analysis of the effect of Chapter VII of the proposed New Bankruptcy Act and the elimination of the SEC in corporate rehabilitation proceedings is examined in Section IV.
Barry L. Ross,
SEC Intervention in Corporate Rehabilitation,
56 Neb. L. Rev. 635
Available at: http://digitalcommons.unl.edu/nlr/vol56/iss3/5