House bill H.R. 2533 was introduced three years ago with much fanfare by the then Chairman of the  House Judiciary Committee. H.R. 2533 proposes amending “title 28 of the United States Code with  respect to proper venue for cases filed by corporations under chapter 11 of title 11 of such Code.” It is  intended to reduce the number of jurisdictions available for filing a bankruptcy case by effectively  eliminating a debtor’s “place of incorporation” as a venue option.

An indenture trustee learned a hard lesson last week when the U.S. Court of Appeals for the Third Circuit held that the description of a feature of its settlement with the debtor in a disclosure statement was inadequate and rendered a key element of the plan and the settlement unenforceable against third-party litigants. It is well established that adequate disclosure of a release provision contained in a reorganization plan is essential to its inclusion in the plan and its enforceability against third parties.