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Bankruptcy Voting And The Designation Power, Christopher W. Frost
Bankruptcy Voting And The Designation Power, Christopher W. Frost
Law Faculty Scholarly Articles
Chapter 11 of the Bankruptcy Code is the only form of bankruptcy that requires winning the consent of the creditor body. Creditors are given the right to vote based on an underlying assumption that they will cast their votes to maximize recovery on their claims. When creditors collectively vote to further these distributional goals, then the estate in turn should realize the maximum value for its assets. "Value maximization" is one of the fundamental goals of chapter 11, and voting in bankruptcy is an important way of achieving that goal.
The problem with these assumptions is that creditors sometimes vote …
Bankrupting The Faith, Pamela Foohey
Bankrupting The Faith, Pamela Foohey
Articles by Maurer Faculty
This Article presents the results of a comprehensive empirical study of religious organizations that filed bankruptcy under Chapter 11 from the beginning of 2006 to the end of 2011. It examines the institutions’ characteristics, reasons for filing, and case outcomes to investigate whether Chapter 11 is an effective solution to their financial problems. In investigating the religious organizations’ cases, the Article also assesses the role of bankruptcy courts in adjudicating Chapter 11 cases and places the cases within theories about the larger purposes of Chapter 11.
The study finds that the vast majority of debtors are small organizations that operate …