Forced to make mistakes: Reasons for complaining about Bebchuk’s scheme and other market-oriented insolvency procedures

Dilger Alexander


Zusammenfassung
Bebchuk's proposal for bankruptcy reform is analysed, in particular his claim that using options is fair and prevents justified complains. However, the proposal has a systematic bias against junior creditors and former shareholders because they have to pay for unavoidable mistakes in estimating the company's value, may lack the financial resources to exercise their options and lose by a day of reckoning. A market solution will be specified that is simpler and at least as fair as Bebchuk's scheme according to his own standards. However, a complete solution to these problems may have to be a non-market one.



Publikationstyp
Forschungsartikel (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2006

Fachzeitschrift
European Journal of Law and Economics

Band
21

Ausgabe
1

Erste Seite
79

Letzte Seite
94

Sprache
Englisch

ISSN
0929-1261

DOI

Gesamter Text