The recharacterization of leasehold interests as mortgages has several hundred years of history and doctrinal development that focuses on the intent of the parties. Bankruptcy cases, however, have recently abandoned this body of law, replacing it sub silentio with a federal economic substance...

We propose a new determinant of covenant strictness in syndicated loan contracts: the degree of creditor friendliness of Chapter 11 bankruptcy practices. This new channel dictates that the more debtor(creditor)-friendly the bankruptcy practice is, the more creditors will seek to...

May 20, 2019 witnessed the promulgation of a judgement by the United States Supreme Court which settled a circuit split created by the Court of Appeals for the First Circuit and answered a question which was the subject of quandary for the American legal fraternity for more than 35 years. A...

Our paper offers the first justification for the U.S. bankruptcy code, in which firms are not allowed to commit themselves ex-ante in their lending agreements either to (Chapter 7) liquidation or to (Chapter 11) reorganization in case of distress ex-post. If fire-sale liquidation imposes...

While credit risk transfer market dramatically increases the complexity of lender's incentive structure and above all reduces the incentives of the bank to monitor debtor, a ‘harsh' bankruptcy environment (as evidenced in the shift from the debtor controlled to creditor controlled...