[arin-ppml] ARIN-prop-140 Business Failure Clarification
Joe St Sauver
joe at oregon.uoregon.edu
Mon May 2 13:59:46 EDT 2011
Regarding the proposal to...
#Add to end of Section 8.1: "Note that an entity which is reorganizing
#under any section of the US bankruptcy code (or foreign equivalent) is
#not 'out of business' for the purpose of interpreting this section"
#Potential confusion exists over the requirement to return address space
#from a bankrupt entity. This is a needed clarification to the policy manual.
I have some concerns with the proposed language.
While I am not a lawyer and this is not legal advice, it is my understanding
that not all types of US bankruptcies are the same.
For example, while it is true that a company often comes out the other side
of a Chapter 11 reorganization as a functioning entity, a totally insolvent
company that files a Chapter 7 liquidation is typically disolved/end-of-life/
out-of-business for all intents and purposes.
In my opinion, the proposed policy should make it clear that it applies
ONLY to "reorganizations" and NOT to "liquidations" (as might be implied by
the "under ANY section of the US bankruptcy code" reference, emphasis added),
assuming that this is indeed the intent of the suggested policy language.
I am also not aware of the extent to which non-US entities offer the
equivalent of US Chapter 11 reorganizatons as an option for financially
distressed companies. How close would an "equivalent" foreign policy need
to be to "count" for the purposes of this policy?
Joe St Sauver
Disclaimer: all opinions strictly my own.
More information about the ARIN-PPML