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The restructuring of a bankrupt company often entails the sale of such company. This paper suggests a way to sell the company that maximizes the creditors' proceeds. The key to this proposal is the option left to the creditors to retain a fraction of the shares of the company. Indeed, by...
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We construct an endogenous growth model in which bank runs occur with positive probability in equilibrium. In this … setting, a bank run has a permanent effect on the levels of the capital stock and of output. In addition, the possibility of a … periods. A bank run in our model is triggered by sunspots, and we consider two different equilibrium selection rules. In the …
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The restructuring of a bankrupt company often entails the sale of such company. This paper suggests a way to sell the company that maximizes the creditors' proceeds. The key to this proposal is the option left to the creditors to retain a fraction of the shares of the company. Indeed, by...
Persistent link: https://www.econbiz.de/10009781568
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