Game Theory in Action: Making the Deal Happen in Large and Complex Debt Restructurings (2/2)
By Ravindran Navaratnam (Sage 3)
Introduction
In the first part of the series, we shed light on the dynamics that exist between the borrowers and…
Creditors Strike Back: The Return of the Cooperation Agreement
By Samir Parikh (Lewis & Clark Law School)
In the low interest rate environment that followed the Great Recession, a fanatical demand for high-yield investments provided private…
Non-Financial Liabilities and Effective Corporate Restructuring
By Bo Becker (Stockholm School of Economics) and Jens Josephson (Stockholm Business School)
The system for managing corporate insolvency varies in fundamental ways between countries,…
Financial Disequilibrium
By Samir Parikh (Lewis & Clark Law School)
Corporate bankruptcy cases have recently undergone a shift. After decades where creditors exercised outsized control, equity sponsors have now ascended the throne. This…
Game Theory in Action: Making the Deal Happen in Large and Complex Debt Restructurings (1/2)
By Ravindran Navaratnam (Sage 3)
The dynamics between borrowers and lenders in the context of debt restructuring can be simulated in the form of a…
Loan-to-Own 2.0
By Robert Miller (University of South Dakota)
The rise of convertible debtor-in-possession (“DIP”) financing is symptomatic of a paradigm shift in the control of large bankruptcy cases. During the prior era of lender control,…
Standardizing and Unbundling the Sub Rosa DIP Loan
By Kenneth Ayotte and Alex Zhicheng Huang (UC Berkeley School of Law)
In many recent Chapter 11 cases, debtor-in-possession (DIP) loans determine reorganization plan payoffs at the outset of the…
Bankruptcy’s Cathedral
By Vincent Buccola (Wharton School, University of Pennsylvania)
What good can a corporate bankruptcy regime do in a modern economy? The question bears asking because the environment in which distressed companies find…
The Law and Economics of Investing in Bankruptcy in the United States
By Jared Ellias (UC Hastings)
When commentators describe American bankruptcy law as “the model to which European restructuring laws should aspire,” they are really speaking…
The Role of Corporate Insolvency Law in the Promotion of Economic Growth
By Aurelio Gurrea-Martínez (Singapore Management University)
Introduction
Despite the bad connotations traditionally associated with insolvency proceedings, corporate…