This paper studies the presence of hedge funds in the Chapter 11 process and their effects on bankruptcy outcomes … effect on the debtor manifests in higher probabilities of the latter's loss of exclusive rights to file reorganization plans …

11 bankruptcy. Over-collateralized and with super-priority, strong covenants, rollups, and debtor-funded monitoring costs …-loan ("junk"') spreads charged the same firms within three years before bankruptcy filing. While prepetition lenders have a strong …

share ownership. Furthermore, creditor control rights during bankruptcy (through debtor-in-possession financing and large … stay until filing), the median incumbent does not reduce his stock ownership as the firm approaches bankruptcy …