Prepacks: an empirical study of prepackaged bankruptcies

Article Abstract:

The characteristics of prepackaged bankruptcies (prepacks) using data from financially troubled firms that have undergone prepackaged reorganizations are analyzed. It was contended that the practice offers an alternative to out-of-court reorganizations and the traditional Chapter 11 bankruptcy proceedings. Although it is determined that prepacks provide almost all the advantages of Chapter 11 reorganizations, it was concluded that reorganization costs would determine the creditors' choice among the three procedures.

Failures, Bankruptcy

---

Liquidation costs and capital structure

Article Abstract:

The link between liquidation costs of assets and capital structure in 88 companies which reorganized after filing for Chapter 11 bankruptcy is explored. Specifically, it is shown that high liquidation costs enable firms to emerge from Chapter 11 bankruptcy with 'relatively low debt ratios' with the potential to 'raise new equity capital.' The latter is possible because such firms usually have public and unsecured debt with 'less restrictive covenant terms.'

Capital stock

---

CEO incentive plans and corporate liquidation policy

Article Abstract:

A study was conducted to analyze CEO's incentive plans and corporate liquid policies by examining the influence of insider ownership and compensation in stock options on voluntary liquidation decisions made by industrial companies. Results indicated that CEOs who supported downsizing became better off by liquidation. Findings also showed that liquidation decisions were influenced by increases in shareholder value and CEOs' incentive plans.

Financial Personnel, Chief Executive-Functions, Bonus & Merit Payments, Economic aspects, Practice, Stock options, Chief executive officers, Executives, Financial occupations, Incentives (Business), Bonuses

Similar abstracts:

• Abstracts: Benefit transfers in Italy: an empirical study fo mobility lists in the Milan area. Selective Schools
• Abstracts: Asset markets: how they are affected by tournament incentives for individuals. Free markets and fettered consumers
• Abstracts: The effect of tax-favored retirement accounts on capital accumulation. Market share dynamics and the "persistence of leadership" debate
• Abstracts: The great East Asian capital flow reversal: reasons, responses and ramifications. Inflation distortion of the external accounts: the Australian example
• Abstracts: On inverse homotheticity. An empirical analysis of the relationship between UK treasury bills and the term structure of certificates of deposit

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.