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Bankruptcy Law

2012

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Articles 1 - 30 of 38

Full-Text Articles in Law

Water Bankruptcy, Christine A. Klein Dec 2012

Water Bankruptcy, Christine A. Klein

UF Law Faculty Publications

Many western states are on the verge of bankruptcy, with debts exceeding assets. And yet, they continue to take on additional debt through contracts and other commitments. Although this distress sounds like an outgrowth of the 2008 recession, this crisis involves water, not money. In particular, the problem concerns the western prior appropriation system of water law, which allocates the right to use water under the priority principle of “first in time, first in right.” In many states, the system is so “over-allocated” that it promises to deliver annually much more water than nature provides. The crisis will deepen as ...


Cross-Border Insolvency Problems: Is The Uncitral Model Law The Answer?, S. Chandra Mohan Dec 2012

Cross-Border Insolvency Problems: Is The Uncitral Model Law The Answer?, S. Chandra Mohan

Research Collection School Of Law

This paper examines the impact that the UNCITRAL Model Law on Cross-border Insolvency has had on States in the light of the central problems often associated with transnational insolvencies. Despite the accolades that it has received, the Model Law has been adopted in only 19 countries in the last 15 years and that too in many different ways. If the number of adoptees and the rather conditional acceptance of the Model Law’s provisions represent a lack of international enthusiasm for adopting the Model Law, what are the reasons for this? The paper concludes by asking whether the UNCITRAL Model ...


Defending The Current State Of Section 363 Sales, Jared A. Wilkerson Oct 2012

Defending The Current State Of Section 363 Sales, Jared A. Wilkerson

W&M Law Student Publications

Notwithstanding the priority-based controversy following the Chrysler and GM § 363(b) sales, value is the central dispute dominating the asset sale debate. Given the mounting data purporting to show that sales harm junior creditors by producing low value, I confront two issues in this article. First, I address the depth and breadth of the low value phenomenon for junior creditors, concluding that(a) although sales appear to cut deeply into creditor recoveries, causation has yet to be shown; and (b) sales have not, contrary to the predictions of some scholars, overtaken reorganization. Second, using qualitative and quantitative analysis, I challenge ...


Dynamic Resolution Of Large Financial Institutions, Thomas H. Jackson, David A. Skeel Jr. Oct 2012

Dynamic Resolution Of Large Financial Institutions, Thomas H. Jackson, David A. Skeel Jr.

Faculty Scholarship at Penn Law

One of the more important issues emerging out of the 2008 financial crisis concerns the proper resolution of a systemically important financial institution. In response to this, Title II of Dodd-Frank created the Orderly Liquidation Authority, or OLA, which is designed to create a resolution framework for systemically important financial institutions that is based on the resolution authority that the FDIC has held over commercial bank failures. In this article, we consider the various alternatives for resolving systemically important institutions. Among these alternatives, we discuss OLA, a European-style bail-in process, and coerced mergers, while also extensively focusing on the bankruptcy ...


Were "It" To Happen: Contract Continuity Under Euro Regime Change, Robert C. Hockett Apr 2012

Were "It" To Happen: Contract Continuity Under Euro Regime Change, Robert C. Hockett

Cornell Law Faculty Working Papers

One way or another, the European Monetary Union (EMU) is apt to endure. The prospect of continuation under the precise contours of the regime as we presently find it, however, is anything but certain. Hence many investors and other actual or prospective contract parties are likely to remain skittish until matters grow clearer. This skittishness, importantly, can itself hamper the prospect of expeditious European recovery. Addressing particular sources of ongoing uncertainty about EMU prospects can itself therefore aid in the project of recovery.

This Essay accordingly aims to impose structure upon one particular, and indeed particularly complex, source of uncertainty ...


States Of Bankruptcy, David A. Skeel Jr. Apr 2012

States Of Bankruptcy, David A. Skeel Jr.

Faculty Scholarship at Penn Law

In the past several years, many states’ financial condition has been so precarious that some observers have predicted that one or more might default. As the crisis persisted, a very unlikely word crept into these conversations: bankruptcy. Should Congress provide a bankruptcy option for states, or would bankruptcy be a mistake? The goal of this Article is to carefully vet this question, using all of the theoretical, empirical and historical tools currently available. The discussion is structured as a “case” for bankruptcy, rather than an “on the one hand, on the other hand” assessment. But it seeks to be scrupulously ...


Legal Entities As Transferable Bundles Of Contracts, Henry Hansmann, Kenneth Ayotte Feb 2012

Legal Entities As Transferable Bundles Of Contracts, Henry Hansmann, Kenneth Ayotte

Faculty Scholarship Series

The large modern business corporation is frequently organized as a complex cluster of hundreds of corporate subsidiaries under the common control of a single corporate parent. Our paper provides new theory and supportive evidence that help explain this structure. We focus, in particular, on the advantages of subsidiary entities in providing the option to transfer some or all of the firm's contractual rights and obligations in the future. The theory not only sheds light on corporate subsidiaries, but illuminates a basic function of all types of legal entities, from partnerships to nonprofit corporations.

We show that when, as is ...


The Structural Exceptionalism Of Bankruptcy Administration, Rafael I. Pardo, Kathryn A. Watts Jan 2012

The Structural Exceptionalism Of Bankruptcy Administration, Rafael I. Pardo, Kathryn A. Watts

Articles

The current system of administration of the Bankruptcy Code is highly anomalous. It stands as one of the few major federal civil statutory regimes administered almost exclusively through adjudication in the courts—not through a federal regulatory agency. This means that rather than fitting bankruptcy into a regulatory model, the U.S. Congress has chosen to give the courts primary interpretive authority in the field of bankruptcy, delegating to courts the power to engage in residual policymaking.

Although scholars have noted some narrow aspects of the structural exceptionalism of bankruptcy administration, Congress’s decision to locate responsibility for bankruptcy policymaking ...


The Consumer Bankruptcy Fee Study: Final Report, Lois R. Lupica Jan 2012

The Consumer Bankruptcy Fee Study: Final Report, Lois R. Lupica

Faculty Publications

The Consumer Fee Study’s primary objective is to identify and monetize these costs of bankruptcy access through the analysis of quantitative and qualitative data gathered from court dockets and from professionals working within the bankruptcy system. We began the quantitative section with the hypothesis that following BAPCPA’s enactment, the cost of accessing the consumer bankruptcy system increased. We set out to determine the degree of increased costs, as well as to identify the specific policies and practices affecting these costs. Additionally, we endeavored to evaluate, with specificity, how diverse local procedures and guidelines impact the system’s processes ...


Cross-Border Bankruptcy And The Cooperative Solution, Leah Barteld Jan 2012

Cross-Border Bankruptcy And The Cooperative Solution, Leah Barteld

Student Articles and Papers

Cross-border bankruptcy continues to be an important topic within bankruptcy regimes worldwide. As more corporations find themselves interacting in a market without the confines of geographic borders, countries need to adapt their regulatory schemes to be able to properly handle an orderly liquidation or reorganization without an adverse impact on the economy. This paper discuses the challenges of a cross-border bankruptcy regime that would be effective and proposes a cooperative solution for increasing coordination among insolvency proceedings. As a result of increasing cooperation among jurisdiction in light of the recent and ongoing financial crisis, reform within the bankruptcy regimes around ...


Consumer Bankruptcy Policy: Ability To Pay And Catholic Social Teaching, Richard E. Flint Jan 2012

Consumer Bankruptcy Policy: Ability To Pay And Catholic Social Teaching, Richard E. Flint

Faculty Articles

An essay is presented on consumer bankruptcy policy in the U.S. It informs about the significant changes in the consumer bankruptcy introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 including incorporation of an ability-to-pay test as a requirement for getting the benefits of the act. It reviews the Catholic social teaching related to the interrelationship between the dignity of man and his rights and duties to promote justice and the common good.


State Bankruptcy From The Ground Up, David A. Skeel Jan 2012

State Bankruptcy From The Ground Up, David A. Skeel

Legal Studies and Business Ethics Papers

The nineteenth-century English poet William Wordsworth famously defined poetry as the "spontaneous overflow of powerful feelings ... recollected in tranquility."1 By this definition, there is something a little poetic about the recent debate as to whether Congress should enact a bankruptcy law for states. In late 2010, as the extent of the fiscal crisis in many states became clear, a handful of commentators and politicians proposed that Congress enact a bankruptcy law for states.2 "If Congress does its part by enacting a new bankruptcy chapter for states," one advocate concluded with a somewaht hyperbolic flourish, California governor "Jerry Brown ...


Godzilla Lives! Or, Nonrecourse Carveouts Run Amok, Marshall E. Tracht Jan 2012

Godzilla Lives! Or, Nonrecourse Carveouts Run Amok, Marshall E. Tracht

Articles & Chapters

The author of this article discusses two recent cases which deal with unconditional liability on nonrecourse carveouts and spring-ing guaranties. One potential consequence of these decisions: by essentially converting these contingent guaranties to unconditional guaranties, the threat of springing liability disappears and the guaranties cease to have deterrent effects. If the guarantor is li-able whether or not the single purpose entity files for bankruptcy, why not file? The result is likely to be bankruptcy filings and other "misbehavior" by borrowers. Moreover, the analysis used in these cases would put many performing loans into default along with triggering recourse, threatening substantial ...


Can A Secured Creditor Be Denied The Right To Credit Bid When The Creditor’S Collateral Is Sold Pursuant To A Chapter 11 Plan Of Reorganization?, Marshall E. Tracht Jan 2012

Can A Secured Creditor Be Denied The Right To Credit Bid When The Creditor’S Collateral Is Sold Pursuant To A Chapter 11 Plan Of Reorganization?, Marshall E. Tracht

Articles & Chapters

CASE AT A GLANCE

A bankruptcy plan can only be confirmed over the objection of a secured creditor if the plan is found to be “fair and equitable.” The fair and equitable standard requires, at a minimum, that (i) the creditor may retain its lien on its collateral; (ii) the collateral will be sold subject to the creditor’s right to credit bid its debt; or (iii) the creditor will receive the “indubitable equivalent” of its claim. The Supreme Court must decide whether a plan can provide for the sale of collateral without granting the creditor the right to credit ...


United States Sovereign Debt: A Thought Experiment On Default And Restructuring, Charles W. Mooney Jr. Jan 2012

United States Sovereign Debt: A Thought Experiment On Default And Restructuring, Charles W. Mooney Jr.

Faculty Scholarship at Penn Law

This chapter adopts the working assumption that it is conceivable that at some time in the future it would be in the interest of the United States to restructure its sovereign debt (i.e., to reduce the principal amount). It addresses in particular U.S. Treasury Securities. The chapter first provides an overview of the intermediated, tiered holding system for book-entry Treasuries. For the first time the chapter then explores whether and how—logistically and legally—such a restructuring could be effected. It posits the sort of dire scenario that might make such a restructuring advantageous. It then outlines a ...


A Dialogue On The Costs And Benefits Of Automatic Stays For Derivatives And Repurchase Agreements, Darrell Duffie, David A. Skeel Jr. Jan 2012

A Dialogue On The Costs And Benefits Of Automatic Stays For Derivatives And Repurchase Agreements, Darrell Duffie, David A. Skeel Jr.

Faculty Scholarship at Penn Law

For nearly two years, the two of us have had a running discussion of the costs and benefits of automatic stays in bankruptcy for qualified financial contracts (QFCs) such as derivatives and repurchase agreements, particularly those held by systemically important major dealer banks. Under current U.S. bankruptcy law, these contracts are exempted from the automatic stay. The advantages and disadvantages of this treatment have been a matter of significant debate for the past decade, particularly since the 2008 crisis.

After some background on AFCs and automatic stays, we provide our joint analysis of the costs and benefits of stays ...


The Bankruptcy Of D & K Aviation, T J. Hatter, Maurice Echols, Michael Mason Jan 2012

The Bankruptcy Of D & K Aviation, T J. Hatter, Maurice Echols, Michael Mason

Chapter 11 Bankruptcy Case Studies

No abstract provided.


The Bankruptcy Of Golfers' Warehouse, Inc.: A Lesson In How To Sell A Business In Chapter 11, Briton Collins, Will Smith, David Choi Jan 2012

The Bankruptcy Of Golfers' Warehouse, Inc.: A Lesson In How To Sell A Business In Chapter 11, Briton Collins, Will Smith, David Choi

Chapter 11 Bankruptcy Case Studies

No abstract provided.


In Re Jazz Photo Corp., Archie Carden, Cory Swainston Jan 2012

In Re Jazz Photo Corp., Archie Carden, Cory Swainston

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Mesa Airlines, Brittany Brent, Lindy Harris Jan 2012

Mesa Airlines, Brittany Brent, Lindy Harris

Chapter 11 Bankruptcy Case Studies

No abstract provided.


New Era Bankruptcy, Holly N. Mancl Jan 2012

New Era Bankruptcy, Holly N. Mancl

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Solyndra, Brandon Brewer, Matthew Kinsey, Anthony Mendenhall Jan 2012

Solyndra, Brandon Brewer, Matthew Kinsey, Anthony Mendenhall

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Independence Air, Kara West, Patrick Woodside Jan 2012

Independence Air, Kara West, Patrick Woodside

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Lambuth, Jennifer Crake, Zackarij Gradner, Scott Mcleod Jan 2012

Lambuth, Jennifer Crake, Zackarij Gradner, Scott Mcleod

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Movie Gallery, Cornell Kennedy, Phylinda Ramsey, Kevin Rayburn Jan 2012

Movie Gallery, Cornell Kennedy, Phylinda Ramsey, Kevin Rayburn

Chapter 11 Bankruptcy Case Studies

No abstract provided.


In Re Adelphia Communications Corp., Hilari Sheffield, Adam Smith Jan 2012

In Re Adelphia Communications Corp., Hilari Sheffield, Adam Smith

Chapter 11 Bankruptcy Case Studies

No abstract provided.


William Edwin Lindsey, Lida Griest, Chris Inklebarger, Sydney Koch Jan 2012

William Edwin Lindsey, Lida Griest, Chris Inklebarger, Sydney Koch

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Reader's Digest, Walter Machnicki Jan 2012

Reader's Digest, Walter Machnicki

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Still Chasing Chimeras But Finally Slaying Some Dragons In The Quest For Consumer Bankruptcy Reform, 25 Loy. Consumer L. Rev. 1 (2012), Jason Kilborn Jan 2012

Still Chasing Chimeras But Finally Slaying Some Dragons In The Quest For Consumer Bankruptcy Reform, 25 Loy. Consumer L. Rev. 1 (2012), Jason Kilborn

UIC Law Open Access Faculty Scholarship

Consumer bankruptcy systems in Europe and the United States have witnessed especially robust and dynamic development during the past decade. The ever-rising volume of seeking entry to these systems now allows for cross-systemic comparisons of substantially differing “markets” for the relief that these systems offer. In particular, the distinct trend toward greater efficiency seen in other financial markets can be increasingly observed in most consumer bankruptcy regimes, with some notable exceptions. In this context, market performance can be gauged in part by the degree to which systems offer efficient and effective relief as a stimulus to deploying available debtor resources ...


Business Insolvency And The Irish Debt Crisis, 11 Rich. J. Global L. & Bus. 407 (2012), Paul B. Lewis Jan 2012

Business Insolvency And The Irish Debt Crisis, 11 Rich. J. Global L. & Bus. 407 (2012), Paul B. Lewis

UIC Law Open Access Faculty Scholarship

Among the volume of material written about the Irish debt crisis and its impact over the past few years, strikingly little has been written about the ability to save a financially distressed company under Irish law and whether corporate restructuring could have mitigated some of the financial damage to Irish companies, particularly those in the property and construction industries. There is a reason for this. The number of filings under the Examinership law - the rough equivalent of Chapter 11 in the United States - remained small and relatively constant during both the recent boom and the more immediate bust periods of ...