Download or read book Employee Costs of Corporate Bankruptcy written by John R. Graham and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: An employee's annual earnings fall by 13% the year her firm files for bankruptcy, and the present value of lost earnings from bankruptcy to six years following bankruptcy is 87% of pre-bankruptcy annual earnings. More worker earnings are lost in thin labor markets and among small firms. Ex ante compensating wage differentials for this "bankruptcy risk" are approximately 2% of firm value for a firm whose credit rating falls from AA to BBB, comparable to the magnitude of debt tax benefits. Thus, wage premia for expected costs of bankruptcy are of sufficient magnitude to be an important consideration in corporate capital structure decisions.
Download or read book Human Capital Loss in Corporate Bankruptcy written by John R. Graham and published by . This book was released on 2016 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper quantifies the “human costs of bankruptcy” by estimating employee wage losses induced by the bankruptcy filing of employers using employee-employer matched data from the U.S. Census Bureau's LEHD program. We find that employee wages begin to deteriorate one year prior to bankruptcy. One year after bankruptcy, the magnitude of the decline in annual wages is 30% of pre-bankruptcy wages. The decrease in wages persists (at least) for five years post-bankruptcy. The present value of wage losses summed up to five years after bankruptcy amounts to 29-49% of the average pre-bankruptcy market value of firm. Furthermore, we find that the ex-ante wage premium to compensate for the ex-post wage loss due to bankruptcy can be of similar magnitude with that of the tax benefits of debt.
Download or read book Employee Benefits and Executive Compensation in Corporate Bankruptcy written by John R. Cornell and published by . This book was released on 2010-01-01 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Collier monograph.
Download or read book Employee Benefits and Executive Compensation in Corporate Bankruptcy written by John R. Cornell and published by LexisNexis/Matthew Bender. This book was released on 2008-01-01 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Costs of Corporate Bankruptcy written by Michelle J. White and published by . This book was released on 1993 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Professional Fees in Corporate Bankruptcies written by Lynn M. LoPucki and published by Oxford University Press. This book was released on 2011-04-19 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bankrupt Enron paid more than a billion dollars in cash to bankruptcy lawyers, financial advisors, and other bankruptcy professionals. The managers of Enron, like those of most bankrupt companies, paid the professionals with other peoples' money - money that would otherwise have gone to creditors, employees, shareholders, or to saving the companies. To prevent excessive payments, the bankruptcy code and rules establish an elaborate system for public reporting and court approval of professional fees. Armed with the ability to choose among courts that want or need to attract the cases, the professionals have largely taken charge of the fee-control system and rendered it toothless. The professionals ignore ignore the rules and the courts do nothing about it. Objections to fees are rare, and the courts award almost 99% of the amounts applied for. Fees rose at the rate of 9.5% per year from 1998 through 2007. Effective methods for assessing and controlling fees do exist, but it is not in the interests of the courts or the professionals to employ them. Based on a study of thousands of documents from the court files in 102 of the largest cases, bankruptcy expert, Lynn M. LoPucki, and political scientist, Joseph W. Doherty, provide an unprecedented window on the worlds of bankruptcy professionals, professional fees, and their scientific study. Through that window, readers see both a disturbing picture of a legal system in crisis and a hopeful one with opportunities for desperately needed reform. Professional Fees in Corporate Bankruptcies is a scholarly work that employs statistical analysis, and documents its findings to scientific standards. But the authors have written for readers with technical backgrounds in neither bankruptcy nor statistics. This book will be of interest not only to scholars studying professional fees, but also to bankruptcy professionals, judges, policymakers, and anyone interested in the functioning of law-based systems.
Download or read book Corporate Bankruptcy written by Jagdeep S. Bhandari and published by Cambridge University Press. This book was released on 1996-03-29 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection is the first comprehensive selection of readings focusing on corporate bankruptcy. Its main purpose is to explore the nature and efficiency of corporate reorganization using interdisciplinary approaches drawn from law, economics, business, and finance. Substantive areas covered include the role of credit, creditors' implicit bargains, nonbargaining features of bankruptcy, workouts of agreements, alternatives to bankruptcy, and proceedings in countries including the United States, United Kingdom, Europe, and Japan. The Honorable Richard A. Posner, Chief Judge of the U.S. Court of Appeals for the Seventh Circuit, offers a foreword to the collection.
Download or read book The Executive Guide to Corporate Bankruptcy written by Thomas J. Salerno and published by Beard Books. This book was released on 2010 with total page 730 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive yet easy-to-read guide through the intricacies of the Chapter 11 corporate bankruptcy process. Ideal for executives, management, board members, and other professionals who need to become conversant in the corporate bankruptcy process.
Download or read book The Costs of Corporate Bankruptcy written by Stephen J. Lubben and published by . This book was released on 2014 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: For almost as long as there have been bankruptcy laws, there have been complaints that the primary beneficiaries of these laws are insiders who administer the bankruptcy system. In recent decades, this line of criticism has carried with it an implicit criticism of bankruptcy courts, who are urged to more aggressively police the costs of bankruptcy. Indeed, at least one recent critic has unkindly suggested that the failure of the courts to control bankruptcy costs is the result of a corrupt bargain between bankruptcy courts and practitioners. Rarely addressed is why bankruptcy courts regulate professional costs at all. In most areas of American law, a professional is accountable solely to its client. Complaints about excessive cost might result in a separate malpractice action, but a client who thinks they have been overcharged for the defense of their speeding ticket will find little relief in traffic court. Why is bankruptcy different?This paper begins to look at this question with brief overview of the concept of bankruptcy costs, traditionally divided between direct and indirect costs. I next turn to a consideration of the process for overseeing bankruptcy costs. I briefly trace the history of court control of compensation in corporate bankruptcy, and then detail the current legal structure. The final part of the chapter then surveys the existing understanding of chapter 11 cost, and concludes with a some thoughts on the important questions that remain unanswered.In short, we know a bit about direct costs, but very little about any other sort of costs. Moreover, what we know is almost entirely lacking in context. This makes it quite hard to understand if the existing system of cost regulation is either useful or justified.
Download or read book How to Avoid Corporate Bankruptcy written by Dan Goldstein and published by Createspace Independent Publishing Platform. This book was released on 2017-10-08 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: Filing for bankruptcy can save a company, but it's an onerous and unpredictable process. Bankruptcy costs a lot of money and time. Lawyers are required at every step and management needs to find new financing when the financing is frozen. There's a chance that the court may not approve the recovery plan or that a third-party management company can take over. Elementary Business has created an alternative to bankruptcy - the "Informal Plan." We've used it over 20 times to save companies in trouble. There's no court, no trustee, no creditor committees, and far lower legal expenses. The Informal Plan also keeps management in control and focused on operations. No mystery here, success can be achieved on a DIY, Do It Yourself plan. The book includes a how to do it, what to say to creditors and useful hints on how to offset difficult issues. IT WORKS!
Download or read book Measuring the Costs of Chapter 11 Cases written by Stephen J. Lubben and published by Eleven International Publishing. This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the costs of both large Chapter 11 cases, that are the subject of much academic and popular attention, and the more typical Chapter 11 cases that are numerically more common. The book calls for a more subtle, less combative examination of Chapter 11. Given the current economic reality in the US, the debate is of special importance. Author S.J. Lubben's findings include: ** the time spent in Chapter 11 has no relationship to cost once a fully specified model is considered. ** references to a professional's "burn rate" are thus misleading, inasmuch as it implies a fixed or constant cost to Chapter 11. Costs ebb and flow through the course of the case. ** repackaged Chapter 11 cases are not significantly cheaper than regular Chapter 11 cases. ** cases filed in New York or Delaware do not cost more. In fact, these jurisdictions seem to actually reduce Chapter 11 costs, likely because of their greater experience with complex Chapter 11 cases. ** fee examiners do not reduce the costs of big Chapter 11 cases. ** the complexity and compensation structure of the professionals retained, which may itself reflect further aspects of complexity, are the key determinants of cost. Debtor size is but a loose proxy for these factors, but is itself of reduced relevance once a fuller model is developed. ** complexity is associated with economies of scale, resulting in lower Chapter 11 costs for the largest, most complex cases.
Download or read book Protecting Employees and Retirees in Business Bankruptcies Act of 2010 written by United States. Congress. House. Committee on the Judiciary. Subcommittee on Commercial and Administrative Law and published by . This book was released on 2010 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Bankruptcy in America written by Edward I. Altman and published by . This book was released on 1971 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book American Workers in Crisis written by United States. Congress. House. Committee on the Judiciary. Subcommittee on Commercial and Administrative Law and published by . This book was released on 2008 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Financial Distress Restructuring and Bankruptcy written by Edward I. Altman and published by John Wiley & Sons. This book was released on 2019-03-26 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive look at the enormous growth and evolution of distressed debt markets, corporate bankruptcy, and credit risk models This Fourth Edition of the most authoritative finance book on the topic updates and expands its discussion of financial distress and bankruptcy, as well as the related topics dealing with leveraged finance, high-yield, and distressed debt markets. It offers state-of-the-art analysis and research on U.S. and international restructurings, applications of distress prediction models in financial and managerial markets, bankruptcy costs, restructuring outcomes, and more.
Download or read book Bankruptcy and Employment Law written by Daniel Louis Keating and published by Aspen Publishers. This book was released on 1995 with total page 534 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Bankruptcy Rates and the Employment Structure of Metropolitan Statistical Areas written by Patricia M. Thomas and published by . This book was released on 1998 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt:
