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Full-Text Articles in Bankruptcy Law
Bankruptcy On The Side, Kenneth Ayotte, Anthony J. Casey, David A. Skeel Jr.
Bankruptcy On The Side, Kenneth Ayotte, Anthony J. Casey, David A. Skeel Jr.
Kenneth Ayotte
This article provides a framework for analyzing side agreements in corporate bankruptcy, such as intercreditor and “bad boy” agreements. These agreements are controversial because they commonly include a promise by one party to remain silent – to waive some procedural right they would otherwise have under the Bankruptcy Code – at potentially crucial points in the reorganization process. Using simplified examples, we show that side agreements create benefits in some instances, but parties to a side agreement may have incentive to contract for specific performance or excessive stipulated damages that impose negative externalities on non-parties to the agreement. A promise …
An Efficiency-Based Explanation For Current Corporate Reorganization Practice, Kenneth M. Ayotte, David A. Skeel Jr.
An Efficiency-Based Explanation For Current Corporate Reorganization Practice, Kenneth M. Ayotte, David A. Skeel Jr.
Kenneth Ayotte
No abstract provided.