Hege, U.; Mella-Barral, P. - Tilburg University, Center for Economic Research - 2000
in a market-based system. The case for a reorganization law is weakened if dilution threats like exit consents are taken … succeed. Since out-of-court renegotiation is a substitute for court-supervised reorganization, the design of a reorganization … law cannot abstract from the financial system. Chapter 11-style renegotiation is shown to benefit public debt firms and to …