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Open Access. Powered by Scholars. Published by Universities.®

2003

University of Pennsylvania Carey Law School

Faculty Scholarship at Penn Law

Corporate governance

Bankruptcy Law

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Creditors' Ball: The 'New' New Corporate Governance In Chapter 11 , David A. Skeel Jr. Mar 2003

Creditors' Ball: The 'New' New Corporate Governance In Chapter 11 , David A. Skeel Jr.

Faculty Scholarship at Penn Law

In the 1980s and early 1990s, many observers believed that the American corporate bankruptcy laws were desperately inefficient. The managers of the debtor stayed in control as "debtor in possession" after filing for bankruptcy, and they had the exclusive right to propose a reorganization plan for at least the first four months of the case, and often far longer. The result was lengthy cases, deteriorating value and numerous academic proposals to replace Chapter 11 with an alternative regime. In the early years of the new millennium, bankruptcy could not look more different. Cases proceed much more quickly, and they are ...