A 32-Hour Bankruptcy: Wave of the Future?

Laughlin, Kate
February 2006
Investment Dealers' Digest;2/20/2006, Vol. 72 Issue 7, p12
Trade Publication
The article reports on the amended bankruptcy code in the U.S. This amendment has increase the speedy prepackaged bankruptcy to companies like Blue Bird Body Co. which gone through as a trend-setter for future bankruptcies. However, the Fort Valley filed its prepackaged bankruptcy plan and in just 32 hours of filing, Blue Bird had also received a court confirmation of its reorganization and new capital structure. Further, this prepackaged bankruptcy, cuts down extremely on the administrative cost to the filer.


Related Articles

  • Speedier Bankruptcies: The Wave Of The Future? K. L. // High Yield Report;2/20/2006, Vol. 17 Issue 7, p1 

    The article reports on the increase in speedy prepackaged bankruptcies of companies in the U.S. The bankruptcy process has become an expensive option for companies to undergone due to the amended U.S. Bankruptcy Code that took effect in the October 2005. Blue Bird Body Co. has undergone a race...

  • The Effect of Forward Markets on the Debt-Equity Mix of Investor Portfolios and the Optimal Capital Structure of Firms. Titman, Sheridan // Journal of Financial & Quantitative Analysis;Mar1985, Vol. 20 Issue 1, p19 

    This paper demonstrates that the various market imperfections that have been suggested to explain observed portfolio choices and capital structures can be circumvented if securities (e.g., options) can be traded that simulate forward contracts on stock. It is shown that if the risk-adjusted...

  • Corporate Capital Structure Decisions: Evidence from Leveraged Buyouts. Roden, Dianne M.; Lewellen, Wilbur G. // FM: The Journal of the Financial Management Association;Summer95, Vol. 24 Issue 2, p76 

    We analyze the composition of the financing packages used in a large sample of leveraged buyout transactions in order to test a set of hypotheses developed in the prior literature about the determinants of corporate capital structure decisions. We focus in particular on the role of agency costs,...

  • Testing the Trade-off Theory of Capital Structure. Howe, John S.; Jain, Ravi // Review of Business;Fall2010, Vol. 31 Issue 1, p54 

    We test the trade-off theory of capital structure in a setting in which a crisis suddenly changes the probability of bankruptcy. In this setting, the trade-off theory of capital structure predicts that the optimum level of capital structure would shift to a lower level of debt, and thus would...

  • KAPITALO STRUKTŪROS Ä®TAKA Ä®MONIŲ PELNINGUMO RODIKLIAMS. Paliulytė, Irena // Management (16487974);2009, Vol. 16 Issue 3, p41 

    The problems of companies' insolvency is related to capital structure, for ehample size of loan capital or companies it is very important to provide good borrowed capital operation which allows companies to avoid problems of insolvency. There is complicated to find overall influence on financial...

  • Loan financing, bankruptcy, and optimal supply. Hauenschild, Nils; Stahlecker, Peter // International Review of Economics & Finance;2004, Vol. 13 Issue 2, p115 

    We consider a model of an economy consisting of heterogeneous firms that are faced with uncertainty in future prices when deciding upon production and financing. It is shown that the firms'' supply behaviour is significantly affected by their attitude towards a possible bankruptcy in case of...

  • Where things stand.  // Money (Australia Edition);Jun2009, Issue 113, p46 

    The author shares several tips on coping with the economic downturn. He emphasizes that debt has become the root of personal and corporate bankruptcy. He is critical of the trend that involves borrowing, buying, and racking up credit card debt. He advises companies to review and remove their...

  • Array Of Factors Impact Recovery of Defaulted Bonds, Loans. K. K. // Bank Loan Report;1/17/2005, Vol. 20 Issue 2, p8 

    This article reports that a variety of macroeconomic, firmspecific and industry-specific factors impact the recovery rate of defaulted loans and bonds. Recovery rates are directly related to a claim's capital structure, the report found. The more senior and secured it is, the better chance of...

  • Debt-equity choice in Europe. Gaud, Philippe; Hoesli, Martin; Bender, Andr� // International Review of Financial Analysis;2007, Vol. 16 Issue 3, p201 

    Abstract: Using a sample of over 5000 European firms, we document the driving factors of capital structure policies in Europe. Controlling for dynamic patterns and national environments, we show how these policies cannot be reduced to a simple trade-off or pecking order model. Both corporate...


Read the Article


Sign out of this library

Other Topics