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Circumvention Of The Bankruptcy Process: The Statutory Institutionalization Of Securitization, Lois R. Lupica
Circumvention Of The Bankruptcy Process: The Statutory Institutionalization Of Securitization, Lois R. Lupica
Faculty Publications
The Article 9 changes address two fundamental issues relevant to securitization transaction participants: (i) the characterization of the asset transfer, and (ii) the clarity and certainty of the process taken to perfect the transferee's interest in the assets. These changes will eliminate some of the uncertainty that asset-backed security investors and securitization originators face. What the Article 9 changes will also do, however, when read in conjunction with the amendments to the Bankruptcy Code, will be to allow certain financial market participants to avoid participation in the bankruptcy process, notwithstanding their provision of financing to a debtor in bankruptcy. A …
Reinvigorating Chapter 11: The Case For Reinstating The Stock-For-Debt Exception In Bankruptcy, Michelle A. Cecil
Reinvigorating Chapter 11: The Case For Reinstating The Stock-For-Debt Exception In Bankruptcy, Michelle A. Cecil
Faculty Publications
This Article suggests that such a proposal will harmonize the bankruptcy policy of rehabilitating financially distressed corporations with the tax policy of ensuring that true economic income is subject to federal income taxation.27 Parts II and III of this Article will trace the common law evolution of the stock-for-debt exception and its statutory codification in 1980, with particular emphasis on the stated policy justifications for the exception. Part IV will then examine the history of the repeal of the stock-for-debt exception, demonstrating that the repeal was the result of hasty political maneuvering rather than reasoned legislative decision-making. In Part V, …