Bankruptcy Reorganization through Markets: Auction-based Creditor Ordering by Reducing Debts (ACCORD)
نویسنده
چکیده
Financial reorganization under bankruptcy reduces a firm’s debts to a serviceable level through negotiations overseen by courts. Academics have suggested using markets as an alternative to such negotiations, recognizing that equity holders and junior claimants have call options to buy the firm back from senior creditors. This paper further develops this market-based approach when claimants are severely cash-constrained, and there is merit in having existing owners-managers remain in control.
منابع مشابه
The Debtor Is Dead, Long Live the Debtor*
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