Law 794: Corporate Reorganizations in Bankruptcy

Corporate Reorganizations in Bankruptcy will emphasize two aspects of corporate reorganization under chapter 11 of the Bankruptcy Code.  The first phase of the course will cover the chapter 11 process including the administrative portion of the case (from filing to plan confirmation), plan confirmation, and post-confirmation issues.  The next phase of the class will study how these basic components are being applied in current reorganizations.  

Topics in this second phase will include (1) the nature of hedge funds and private equity funds, and the ethical and other problems these new investors bring to the chapter 11 process; (2) "give-up" or "gift plans" and absolute priority; (3) the effect of the 2005 legislation's granting of priority to vendors under Section 546(c) of the Bankruptcy Code; (4) sales under Section 363 of the Bankruptcy Code and their critics; (5) the government's distortion of absolute priority to protect public equity investors; (6) individuals and the new chapter 11; and (7) innovations and challenges of claims trading, including an examination of whether the actions of the initial creditor be held against any later acquirer of claim.  Other topics may be added depending on current developments.  

Grading will be based upon class participation and a paper to be completed after the completion of classes, with much greater weight being given to the paper.