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The Outer Fringes Of Chapter 11: Nonconsenting Senior Lenders' Rights Under Subordination Agreements In Bankruptcy, David Kravitz
The Outer Fringes Of Chapter 11: Nonconsenting Senior Lenders' Rights Under Subordination Agreements In Bankruptcy, David Kravitz
Michigan Law Review
This Note focuses on the options a senior creditor in Frugal's position may have when a reorganization plan provides for payments in violation of a subordination agreement that the creditor wishes to enforce. Part I explains the different types of subordination agreements and discusses their treatment under pre-Code bankruptcy law and under the Bankruptcy Code. Because of the dearth of case law regarding nonconsenting senior lenders and subordination agreements, Part II considers a question in a related area of bankruptcy law where more authority exists: whether a reorganization plan may release a nonbankrupt guarantor from its obligations under the guaranty …
Strange Visions In A Strange World: A Reply To Professors Bradley And Rosenzweig, Lynn M. Lopucki
Strange Visions In A Strange World: A Reply To Professors Bradley And Rosenzweig, Lynn M. Lopucki
Michigan Law Review
Much about chapter 11 is in need of improvement. But, as is so often the case, the resonant themes are not the right ones. All three legs of Bradley and Rosenzweig's argument for repeal are seriously flawed. The heart of their empirical argument is their claim to have shown that financially stronger companies reorganizing under chapter 11 have been paying less to both their creditors and their shareholders than did weaker companies reorganizing under prior law. In Part I below, I present several more plausible explanations for the stock and bond price phenomena they observed. In all likelihood, their data …