How to sell a (bankrupt) company?
Cornelli, F. & Felli, L.
(2010).
How to sell a (bankrupt) company?
Centre for Economic Policy Research (Great Britain).
The restructuring of a bankrupt company often entails the sale of such company. This paper suggests a way to sell the company that maximizes the creditors’ proceeds. The key to this proposal is the option left to the creditors to retain a fraction of the shares of the company. Indeed, by retaining the minority stake, creditors can transfer the control of the company while reducing to a minimum the rents that the sale of the company leaves in the hands of the buyer.
| Item Type | Working paper |
|---|---|
| Copyright holders | © 2010 Francesca Cornelli and Leonardo Felli |
| Departments |
LSE > Research Centres > Financial Markets Group LSE > Academic Departments > Economics LSE > Research Centres > STICERD |
| Date Deposited | 07 May 2008 |
| URI | https://researchonline.lse.ac.uk/id/eprint/4685 |
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- http://www.lse.ac.uk/economics/people/faculty/leonardo-felli.aspx (Author)
- http://econ.lse.ac.uk/staff/lfelli/papers/control%208-12-2010.pdf (Publisher)
- http://www.cepr.org/ (Official URL)