Similar Search Results

He, Zhiguo - 2010

market liquidity and shorter debt maturity can exacerbate this externality and cause costly firm bankruptcy at higher …

Persistent link: https://www.econbiz.de/10012462997

Tracing the Woes : An Empirical Analysis of the Airline Industry

Berry, Steven - 2008

The U.S. airline industry went through tremendous turmoil in the early 2000's. There were four major bankruptcies and two major mergers, with all legacy carriers reporting a large profit reduction. This paper presents a structural model of the airline industry, and estimates the impact of demand...

Persistent link: https://www.econbiz.de/10012464144

The Uneasy Case for the Priority of Secured Claims in Bankruptcy : Further Thoughts and a Reply to Critics

Bebchuk, Lucian Arye - 1998

In an earlier article, The Uneasy Case for the Priority of Secured Claims in Bankruptcy,' 105 Yale Law Journal 857 … (1996), we suggested that the case for a full priority of secured claims in bankruptcy is an uneasy one. In this paper, we … confirms our earlier conclusion that the case for a full priority of secured claims in bankruptcy is an uneasy one …

Persistent link: https://www.econbiz.de/10012472333

How Costly is Financial (not Economic) Distress? Evidence from Highly Leveraged Transactions that Became Distressed

Andrade, Gregor - 1997

This paper studies thirty-one highly leveraged transactions (HLTs) of the 1980s that subsequently became financially distressed. At the time of distress, all sample firms have operating margins that are positive and in the majority of cases greater than the median for the industry. Therefore, we...

Persistent link: https://www.econbiz.de/10012472668

A Theory of Workouts and the Effects of Reorganization Law

Gertner, Robert - 1991

We present a model of a financially distressed firm with outstanding bank debt and public debt. Coordination problems among public debtholders introduce investment inefficiencies in the workout process. In most cases, these inefficiencies are not mitigated by the ability of firms to buy back...

Persistent link: https://www.econbiz.de/10012475317

Dynamic Debt Maturity

He, Zhiguo - 2016

A firm chooses its debt maturity structure and default timing dynamically, both without commitment. Via the fraction of newly issued short-term bonds, equity holders control the maturity structure, which affects their endogenous default decision. A shortening equilibrium with accelerated default...

Persistent link: https://www.econbiz.de/10012456753

Optimal Debt and Profitability in the Tradeoff Theory

Abel, Andrew B. - 2015

I develop a dynamic model of leverage with tax deductible interest and an endogenous cost of default. The interest rate includes a premium to compensate lenders for expected losses in default. A borrowing constraint is generated by lenders' unwillingness to lend an amount that would trigger...

Persistent link: https://www.econbiz.de/10012457121

Insolvency Resolution and the Missing High Yield Bond Markets

Becker, Bo - 2013

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit … insolvent firms happens out of court if in-court bankruptcy is inefficient, giving banks an advantage over bondholders. Riskier … borrowers will use bank loans anywhere, but also bonds when bankruptcy is efficient. The model matches empirical debt mix …

Persistent link: https://www.econbiz.de/10012459246

Fiduciary Duties and Equity-Debtholder Conflicts

Becker, Bo - 2011

-debt conflicts. A 1991 Delaware bankruptcy ruling changed the nature of corporate directors' fiduciary duties in firms incorporated …

Persistent link: https://www.econbiz.de/10012460996