Sky Blog
While the distressed debt market continues to be extraordinarily active, Chapter 11 activity has remained at a relatively steady level compared to recent years. The high costs of Chapter 11, together with stakeholder incentives to “kick the can” when possible, …
Corporate creditors, perhaps like Americans generally, like to think of themselves as rugged individuals who also work within a communal system. The fundamental tension is clearest at the point of default: Too much individuality, and a small minority of creditors …
The COVID-19 pandemic is causing financial distress to economically viable firms on an unprecedented scale. In this post, we introduce the novel idea of creditor cooperation duties to stabilize corporate workouts.
The prospect of widespread defaults by viable firms triggered …