Law Commons^™

Investing In Distressed Italian Companies Under The Reformed Italian Bankruptcy Law - A Comparison With The Us Bankruptcy Code, Pierantonio Musso

Pierantonio Musso

This article presents a scheme to profitably invest in distressed Italian companies by taking advantage of the Italian Bankruptcy Law in comparison with the US Bankruptcy Code. The risks connected to the insolvency proceeding are analyzed under their economic effects and foreseen in their general appearance. Specific remedies to avoid or mitigate the potential risks are provided. Singular advantages, available only in the proposed investment scheme under the Italian Law, are described. As a result the investment produces a less risky and more profitable outcome than an investment in a non-distressed and non-Italian target company.

Delaware’S Relevance In Chapter 22: Who Is “Courting Failure” Now?, Ruth S. Lee

Ruth S Lee

This study presents surprising new statistical evidence that contributes to the current “over-heated” academic debate about the Delaware courts’ role in Chapter 11 failure. In 2001, Professor LoPucki published an influential article suggesting that when large corporations file for bankruptcy under Chapter 11, they fail at a dramatically higher rate in Delaware courts than in other jurisdictions. He attributed this to corruption. His article enraged many academics and practitioners, and ignited many articles in the past two decades. This study presents startling evidence that while Chapter 11s filed in Delaware courts did have much higher failure rates from 1991-1996, after …

Doma’S Bankruptcy, Mark Strasser

Mark Strasser

Over the past few years, several federal courts have suggested or held that section three of the Defense of Marriage Act (DOMA) violates constitutional guarantees. The courts have differed, however, both with respect to the appropriate standard of review and with respect to the particular constitutional guarantees that the section allegedly violates. Ironically, the resolution of these debates may ultimately have less import for the constitutionality of the section at issue than for the constitutionality of DOMA’s full faith and credit section and for the constitutionality of state same-sex marriage bans. This article addresses the constitutionality of section three of …

How Consumer Bankruptcy Reforms Can Help Save Microfinance In India, David E. Solan

David E Solan

The microfinance industry, once touted as one of the best hopes for alleviating poverty in rural India, faced a near collapse in the winter of 2011 as nearly all borrowers in Andhra Pradesh, one of the largest states in India, stopped repaying their loans. This borrower backlash was fueled by widely reported stories of farmer suicides and unscrupulous lending practices. Politicians have responded with populist legislation aimed at curtailing microfinance in India—for example, by capping interest rates. The Article argues that these proposals are misguided in that they would constrict lending to poor villagers.

The Article questions why Indian policymakers …

Running On Empty: Municipal Insolvency And Rejection Of Collective Bargaining Agreements In Chapter 9 Bankruptcy, Richard W. Trotter Esq.

Richard W. Trotter Esq.

Abstract: This article conducts an in-depth analysis of the facts and law surrounding the potential modification and rejection of collective bargaining agreements by municipal debtors in Chapter 9 bankruptcy. American municipal governments are in the midst of a widespread financial crisis. Many are facing enormous budget deficits in 2011 and beyond. As a result, the heretofore-unthinkable option of filing for bankruptcy protection pursuant to Chapter 9 of the Federal Bankruptcy Code is becoming increasingly viable. One of the most vital issues presented by this poorly understood chapter of the Bankruptcy Code is if and how would-be municipal debtors can modify …

Running On Empty: Municipal Insolvency And Rejection Of Collective Bargaining Agreements In Chapter 9 Bankruptcy, Richard W. Trotter Esq.

Richard W. Trotter Esq.

Abstract: This article conducts an in-depth analysis of the facts and law surrounding the potential modification and rejection of collective bargaining agreements by municipal debtors in Chapter 9 bankruptcy. American municipal governments are in the midst of a widespread financial crisis. Many are facing enormous budget deficits in 2011 and beyond. As a result, the heretofore-unthinkable option of filing for bankruptcy protection pursuant to Chapter 9 of the Federal Bankruptcy Code is becoming increasingly viable. One of the most vital issues presented by this poorly understood chapter of the Bankruptcy Code is if and how would-be municipal debtors can modify …

Dip Lending And The Death Of Emergence: Reorganization Outcomes Post-Crisis, Aditya Habbu, Nikhil Abraham

Aditya Habbu

In this paper we examine bankruptcy successes and failures before and after the credit crisis for those debtors that sought DIP loans. We found that post-crisis, for companies that filed for bankruptcy stand alone emergences decreased (percentage-wise), while sales increased. Additionally, we found that post-crisis private equity fund involvement in debtor in possession (“DIP”) loans increased, and DIP loan interest rates increased as well. To supplement the analysis we surveyed practitioners, interviewing two Federal bankruptcy judges, a restructuring investment bank managing director, as well as DIP lenders. These interviews and our data support the view that while DIP loans were …

Debt, Financial Distress, And Bankruptcy Over The Life Course, Allison L. Mann, Ronald J. Mann

Ronald Mann

This paper examines how the risks of debt, financial distress, and bankruptcy shift over the life course. Comparing parallel data from the 2007 Survey of Consumer Finances and the 2007 Consumer Bankruptcy Project, we analyze use of the bankruptcy process as a product of the distribution of unplanned events, the ability of households to use credit markets to limit the adverse effects of such events, and barriers in access to the bankruptcy system. Our findings suggest two things. One, bankrupt households generally come from the bottom quartiles of the population in assets and income and the top quartile in debt, …