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Many companies are incorporated in Delaware, in part because of favorable tax law.
In 2005, Republican Sen. John Cornyn of Texas introduced legislation that would have eliminated the state of incorporation as a basis for choosing a bankruptcy-filing venue. He backed down after Sen. Biden promised a long fight. "Sen. Biden made it clear that he would oppose Sen. Cornyn's amendment to the hilt," says a spokesman for the Texas senator.
"If Sen. Cornyn truly believed that the system was broken, he had every opportunity to offer [the] amendment at the time for a full debate, but he didn't," says David Wade, a spokesman for Sen...
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