Lawmakers Hold Hearing on ‘Texas Two-Step’ Bankruptcy Legal Maneuver

WASHINGTON, D.C. –– Lawmakers recently participated in a U.S. Senate Judiciary subcommittee hearing looking at the “Texas Two-Step” bankruptcy legal maneuver, with one senator opining that the creation of a separate company to house liabilities is “not good corporate responsibility.”

Among those that were called as witnesses during the Feb. 8 hearing of the Subcommittee on Federal Courts, Oversight, Agency Action, and Federal Rights in the U.S. Senate were Hon. Judith K. Fitzgerald of Tucker Arensberg, P.C., David A. Skeel Jr., a S. Samuel Arsht Professor of Corporate Law at the University of Pennsylvania Law School, Kimberly Ann Naranjo of …