Modern Chapter 11 PracticeThe sale of financially distressed firms as a going concern has been the dominant trend in U.S. business bankruptcy law for the last ten years. An increasing proportion of bankrupt firms use Chapter 11 not as a traditional reorganization mechanism but as a convenient auction block. Indeed, many firms now file for Chapter 11 in order to effectuate a going concern sale as opposed to writing down debt. This trend, that gained so much momentum, has led scholars to distinguish between a traditional and a modern Chapter 11 practice and, ultimately, debate over the need for Chapter 11’s very existence.
Starting from the foundation of the U.S. corporate reorganization law, the equity receivership, this seminar will deal with the key issues arising in the course of distressed asset sales and attempt to explain how the current law, business and economic environment has favored sales over rehabilitations, thus changing the face of traditional Chapter 11 practice.
|Partial list of professors who teach or have taught this course:|
|Foteini Teloni||Spring 2013|