The Market is Fairer than Bebchuk’s Scheme

Dilger Alexander


Zusammenfassung
Bebchuk's proposal for bankruptcy reform is described and analyzed, in particular his claim that using options is fair and that the participants of such a bankruptcy procedure have no basis to complain. It will be shown that some reasons for complaining remain. Above all, 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 and may lack the financial resources to exercise their options. A market solution will be specified that is fairer than Bebchuk's scheme according to his own standards.



Publikationstyp
Sonstige wissenschaftliche Veröffentlichung

Publikationsstatus
Veröffentlicht

Jahr
2000

Band
09/00

Reihe
Wirtschaftswissenschaftliches Diskussionspapier der Rechts- und Staatswissenschaftlichen Fakultät

Ort
Greifswald

Sprache
Englisch

ISSN
1437-6989

Gesamter Text