About the Book
Corporate Bankruptcy and Financial Reorganization
2017. 696 Pages. ISBN: 978-1-4548-7508-6.
About the Book
The first edition of Corporate Bankruptcy and Financial Reorganization is designed to teach students the legal and financial principles of business bankruptcy law. It is ideal for second- and third-year law students who are considering careers involving matters of business bankruptcy, debt financing, or corporate transactions such as distressed asset purchases. It is a stand-alone text that assumes no previous student exposure to bankruptcy law or financial principles. Chapters are comprised of (1) case excerpts with questions to prompt discussion and analysis; (2) short readings that summarize the relevant rules, doctrines, and financial concepts; and (3) problems requiring students to apply the relevant legal and financial principles to hypothetical fact patterns. With an emphasis on building student familiarity with basic principles of finance, Corporate Bankruptcy and Financial Reorganization examines each of the major types of investors in a business corporation, including secured creditors, unsecured and subordinated bondholders, trade creditors, and equityholders; it then shows how conflicts among these groups are addressed and resolved by the Bankruptcy Code and other legal structures. In addition, it includes a thorough treatment of § 363 sales, and it addresses matters of banking and systemic risk. A thorough teacher’s manual is included with answers to problems as well as suggested methods for covering these problems effectively in class.
Key Features of the First Edition:
• Emphasis on building student understanding of basic principles of finance, which includes discussion of each of the major types of investors in a business corporation (secured creditors, general financial and non-financial creditors, subordinated debentureholders, equityholders) and of the economic conflicts that arise among them when the corporation is in distress.
• Teaching through numerical problems that give students a deeper understanding of the financial conflicts that bankruptcy law aims to resolve.
• Stimulating student interest through basic financial and economic theory, such as the theory of why firms issue debt rather than adopting all-equity cash structures, and of how secured debt reduces financing costs by deterring debtor misconduct. By engaging students on the plane of theory, these materials add variety to the learning experience, counterbalancing the close reading of cases and statutory language that the book also demands.
• Thorough treatment of §363 sales.
• Two chapters devoted entirely to banking and systemic risk, showing how rules codified both in the Bankruptcy Code and in complementary federal regulatory regimes aim to resolve financial institutions in distress and protect financial-contract counterparties.
• Devotes a chapter to elucidating the Bankruptcy Code’s complex rules for cramming down secured creditors by deconstructing the interconnected statutory sections and providing a thorough analysis that is integrated with related topics. A unique summary table at the end of the chapter helps student digest the analysis.
• Emphasis on logical organization and clear exposition, with a short introduction at the beginning of each chapter that identifies the chapter’s major themes and places them in the broader context of the book.
• Thorough Teacher’s Manual with answers to problems as well as suggested methods for covering these problems effectively in class.