On January 8, 2018, Senators John Cornyn (R., Texas) and Elizabeth Warren (D., Massachusetts) introduced a bill that, if passed, would require companies to file for relief under the bankruptcy code in a court near its principal place of business or where the principal assets of the company are located. See Senate Bill 2282. The proposed legislation removes language currently contained in 28 U.S.C. § 1408 that permits companies to file for bankruptcy where they are incorporated or where smaller affiliates operate. See 28 U.S.C. § 1408(1) and (2). The proposed legislation would limit the ability of many companies to file for bankruptcy in Delaware and New York, which many companies have no relation to other than being incorporated there. The text of the proposed legislation can be found here.
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