Revenue efficiency and change of control: the case of bankruptcy
Cornelli, F. & Felli, L.
(1998).
Revenue efficiency and change of control: the case of bankruptcy.
(Financial Markets Group Discussion Papers 300).
Financial Markets Group, The London School of Economics and Political Science.
The restructuring of a bankrupt company often entails a change of control. By efficiency of a bankruptcy procedure it is usually meant that the control is allocated into the hands of those who can maximize its value. In this paper we focus instead on how to allocate control with a procedure that allows the creditors to maximize their returns. The conclusion is that creditors should be allowed to retain a fraction of the shares of the company.
| Item Type | Working paper |
|---|---|
| Copyright holders | © 1998 The Author(s) |
| Departments | LSE > Academic Departments > Economics |
| Date Deposited | 05 Jul 2023 |
| URI | https://researchonline.lse.ac.uk/id/eprint/119139 |