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.
(CEPR Discussion Paper 2030).
Centre for Economic Policy Research (Great Britain).
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 Authors |
| Departments |
LSE > Research Centres > Financial Markets Group LSE > Academic Departments > Economics LSE > Research Centres > STICERD |
| Date Deposited | 04 Jun 2008 |
| URI | https://researchonline.lse.ac.uk/id/eprint/5354 |