A bipartisan bill sponsored by leaders of the House JudiciaryCommittee may strip Delaware of its status as the premier venue forU.S. bankruptcy cases, costing the state's economy an estimated$100 million a year.

Lamar Smith, the Texas Republican who chairs the Judiciarypanel, introduced the bill with Michigan's John Conyers, itsranking Democrat. The aim is to prevent court-shopping and makecompanies reorganize at home “to ensure maximum input from allaffected stakeholders,” Smith said in a statement. Delaware'sCongressional delegation disagreed, citing the Wilmington-basedcourt's expertise.

“When someone has a specific medical problem, they go to aspecialist,” Representative John Carney, a Democrat, said bye-mail. “Delaware's courts are our nation's bankruptcyspecialists.” The state's two U.S. senators, Democrats ThomasCarper and Chris Coons, also oppose the bill.

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