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Conference Proceeding

Compensating Unsecured Creditors for Extraordinary Bankruptcy Reorganization Risks

Authors: Lynn M. LoPucki (UCLA School of Law) , William C. Whitford (Wisconsin Law School.)

  • Compensating Unsecured Creditors for Extraordinary Bankruptcy Reorganization Risks

    Conference Proceeding

    Compensating Unsecured Creditors for Extraordinary Bankruptcy Reorganization Risks

    Authors: ,

Abstract

To reduce creditors' and shareholders' incentives to resist managers' efforts to maximize, we proposed that parties to the reorganization case who stand to benefit during the pendency of a Chapter 11 reorganization from a particular investment be required to compensate those disadvantaged by it. The purpose of this article is to elaborate on that proposal.

Keywords: Bankruptcy reorganization, Debtor and creditor, United States, Investments, Corporate governance

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Published on
1994-01-01