This paper examines the phenomenon of management-initiated, court-supervised reorganization of companies in U.S. bankruptcy court. The proposed in-court persuasion mechanism reconciles excessive reorganizations of non-viable companies (and subsequent repeat failures) with management-initiated...

The objective of this article is to observe stock prices of firms around their filing for liquidation or reorganization procedure. Through a methodology developed for this purpose, we compare the stock returns of these firms with that of ¡°similar¡± companies but not affected by this type of...

This study examines the resolution of Lehman Brothers Holdings Inc. in the U.S. Bankruptcy Court in order to clarify the sources of complexity in its resolution and to inform the debate on appropriate resolution mechanisms for financial institutions. The authors focus on the settlement of...