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POTUS Memo on Orderly Liquidation Review May Clear Path for Legislation Amending Bankruptcy Code

Media Alert
NEW YORK, April 21, 2017 - The White House announced that the president signed a memo today instructing U.S. Treasury Secretary Steven Munchin to review the Orderly Liquidation Authority (OLA) provision of the Dodd-Frank Act. Financial Restructuring partner at Baker Botts, Manny Grillo, explains how this action may clear the way for Congress to pass the Financial Institution Bankruptcy Act (FIBA) of 2017, a bill that would amend the Bankruptcy Code by adding new provisions for administering the bankruptcy process of major financial institutions. 

“OLA originated under the Dodd-Frank Act to address failing financial institutions in the wake of the Lehman collapse” said Grillo. “Given the potential overlap in jurisdiction, the review of OLA may clear the way for FIBA, which poses critical change to the industry by significant transformation of the bankruptcy process for major financial institutions.” 

FIBA was recently reintroduced in the U.S. House of Representatives and passed on April 5, 2017. The legislation proposes modifications and insolvency reform options that would impact major financial institutions by offering a voluntary bankruptcy procedure. 

Mr. Grillo advises banks, hedge funds, sponsors and other financial institutions regarding insolvency and restructuring matters in complex financings and securitizations. He focuses on debt restructurings and the reorganization liquidation of financially distressed businesses under Chapter 11 of the Bankruptcy Code. 


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