Corporate bankruptcy law is a tool to resolve the financial distress of corporations. Unviable corporations are liquidated and the proceeds distributed to the creditors. Viable corporations are restructured and put on a new financial footing. Following the model of Chapter 11 of the US Bankruptcy Code, many jurisdictions worldwide have strengthened or introduced such restructuring… Read More »
Firms rely extensively on debt financing. While debt has many benefits, value can be destroyed when lenders worry they will not be repaid. For example, a firm at risk of liquidating may lose customers who derive utility from future interactions with a stable business. Likewise, a firm may be perceived by consumers as having low… Read More »
My recent paper, Fee-Shifting in Bankruptcy, examines the circumstances under which courts permit and refuse parties’ recovery of bankruptcy-related attorneys’ fees as costs. It turns out that, in bankruptcy, most of the major parties are not bearing their own attorney’s fees. In this context, it is fatuous to treat the American Rule as a basic point of… Read More »
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