Bankruptcy auctions: Costs, debt recovery, and firm survival

Journal of Financial Economics

Volumn 58, Issue 3, 2000, Pages 337-368

  Thorburn, Karin S ^a  

^a DARTMOUTH COLLEGE   (United States)

Author keywords

Auctions; Bankruptcy costs; Chapter 11; Debt recovery; Prepacks

Indexed keywords

EID: 0034363463     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-405X(00)00075-1     Document Type: Article

References (46)

1. Aghion P., Hart O., Moore J. The economics of bankruptcy reform. Journal of Law, Economics and Organization. 8:1994;523-546.
2. Altman E. A further empirical investigation of the bankruptcy cost question. Journal of Finance. 39:1984;1067-1089.
3. Altman E. Corporate Financial Distress and Bankruptcy. 1993;Wiley, New York.
4. Ang J., Chua J., McConnell J. The administrative costs of corporate bankruptcy: a note. Journal of Finance. 37:1982;219-226.
5. Baird D. The uneasy case for corporate reorganizations. Journal of Legal Studies. 15:1986;127-147.
6. Bebchuk L. A new approach to corporate reorganizations. Harvard Law Review. 101:1988;775-804.
7. Berkovitch, E., Israel, R., 1995. The bankruptcy decision and debt contract renegotiation. Unpublished working paper, University of Michigan, Ann Arbor, MI.
8. Betker B. An empirical examination of prepackaged bankruptcy. Financial Management. 24:1995;3-18.
9. Betker B. The administrative costs of debt restructurings: some recent evidence. Financial Management. 26:1997;56-68.
10. Bradley M., Rosenzweig M. The untenable case for Chapter 11. Yale Law Journal. 101:1992;1043-1095.
11. Easterbrook F. Is corporate bankruptcy efficient? Journal of Financial Economics. 27:1990;411-418.
12. Eberhart A., Moore W., Roenfeldt R. Security pricing and deviations from the absolute priority rule in bankruptcy proceedings. Journal of Finance. 45:1990;1457-1469.
13. Eckbo, E., Thorburn, K., 2000a. Toeholds and fire-sales in bankruptcy auctions. Unpublished working paper, Dartmouth College, Hanover, NH.
14. Eckbo, E., Thorburn, K., 2000b. The resolution of financial distress in a cash auction bankruptcy environment. Unpublished mimeo, Dartmouth College, Hanover, NH.
15. Flynn, E., 1989. Statistical analyses of Chapter 11. Unpublished study. Administrative Office of the U.S. Courts, Washington, DC.
16. Franks J., Nyborg K., Torous W. A comparison of US, UK and German insolvency codes. Financial Management. 25:1996;86-101.
17. Franks J., Torous W. An empirical investigation of U.S. firms in reorganization. Journal of Finance. 44:1989;747-770.
18. Franks J., Torous W. A comparison of financial recontracting in distressed exchanges and Chapter 11 reorganizations. Journal of Financial Economics. 35:1994;349-370.
19. Gilson S., John K., Lang L. Troubled debt restructurings: an empirical study of private reorganization of firms in default. Journal of Financial Economics. 27:1990;315-353.
20. Hansen R., Thomas R. Auctions in bankruptcy: theoretical analysis and practical guidance. International Review of Law and Economics. 18:1998;159-185.
21. Harris M., Raviv A. The theory of capital structure. Journal of Finance. 46:1991;297-355.
22. Haugen R., Senbeth L. The insignificance of bankruptcy costs to the theory of optimal capital structure. Journal of Finance. 33:1978;383-393.
23. Haugen R., Senbeth L. Bankruptcy and agency costs: their significance to the theory of optimal capital structure. Journal of Financial and Quantitative Analysis. 23:1988;27-38.
24. Hotchkiss E. Post-bankruptcy performance and management turnover. Journal of Finance. 50:1995;3-21.
25. Hotchkiss E., Mooradian R. Vulture investors and the market for control of distressed firms. Journal of Financial Economics. 43:1997;401-432.
26. Hotchkiss E., Mooradian R. Acquisitions as a means of restructuring firms in Chapter 11. Journal of Financial Intermediation. 7:1998;240-262.
27. Jensen M. Active investors, LBOs, and the privatization of bankruptcy. Journal of Applied Corporate Finance. 2:1989;35-44.
28. Jensen M. Corporate control and the politics of finance. Journal of Applied Corporate Finance. 4:1991;13-33.
29. Jensen-Conklin S. Do confirmed Chapter 11 plans consummate? the results of a study and analysis of the law. Commercial Law Journal. 97:1992;297-331.
30. Lawless R., Ferris S., Jayaraman N., Makhija A. A glimpse at professional fees and other direct costs in small firm bankruptcies. University of Illinois Law Review. 4:1994;847-888.
31. Lieb R. Vultures beware: risks of purchasing claims against a Chapter 11 debtor. The Business Lawyer. 48:1993;915-941.
32. LoPucki, L., 1983. The debtor in full control - systems failure under Chapter 11 of the bankruptcy code? American Bankruptcy Law Journal 57, 99-126 and 247-273.
33. LoPucki L., Whitford W. Patterns in the bankruptcy reorganization of large, publicly held companies. Cornell Law Review. 78:1993;597-618.
34. Miller M. Debt and taxes. Journal of Finance. 32:1977;261-275.
35. Pulvino T. Do asset fire-sales exist? an empirical investigation of commercial aircraft transactions. Journal of Finance. 53:1998;939-978.
36. Ravid A., Sundgren S. The comparative efficiency of small-firm bankruptcies: a study of the U.S. and Finnish bankruptcy codes. Financial Management. 27:1998;28-40.
37. Roe M. Bankruptcy and debt: a new model for corporate reorganization. Columbia Law Review. 83:1983;527-602.
38. Shleifer A., Vishny R. Liquidation values and debt capacity: a market equilibrium approach. Journal of Finance. 47:1992;1343-1366.
39. Strömberg, P., 2000. Conflicts of interest and market illiquidity in bankruptcy auctions: theory and tests. Journal of Finance, forthcoming.
40. Strömberg, P., Thorburn, K., 1996. An empirical investigation of Swedish corporations in liquidation bankruptcy. EFI Research Report, Stockholm School of Economics, Sweden.
41. Thorburn, K., 2000. Auction bankruptcy and the CEO. Unpublished working paper, Dartmouth College, Hanover, NH.
42. Tashjian E., Lease R., McConnell J. An empirical analysis of prepackaged bankruptcies. Journal of Financial Economics. 40:1996;135-162.
43. Warner J. Bankruptcy costs: some evidence. Journal of Finance. 32:1977;337-347.
44. Weiss L. Bankruptcy resolution: direct costs and violation of priority of claims. Journal of Financial Economics. 27:1990;285-314.
45. White, M., 1984. Bankruptcy liquidation and reorganization. In: Logue, D., Seward, J. (Eds.), Handbook of Modern Finance. Warren, Gorham & Lamont, Boston, pp. E7-1-E7-44.
46. White M. The costs of corporate bankruptcy: a U.S. - European comparison. Bhandari J., Weiss L. Corporate Bankruptcy: Economic and Legal Perspectives. 1996;467-500 Cambridge University Press, England.