The Role of Distressed Debt Markets, Hedge Funds and Recent Trends in Bankruptcy on the Outcomes of Chapter 11 Reorganizations

Posted: 15 Nov 2013

See all articles by Edward I. Altman

Edward I. Altman

New York University (NYU) - Salomon Center; New York University (NYU) - Department of Finance

Date Written: November 14, 2013

Abstract

This paper explores the scope and importance of the distressed debt market and its market participants and summarizes several relevant scholarly publications relating to how both these markets and participants have performed and contributed to the Chapter 11 bankruptcy-reorganization process. We also present new and potentially important data on recent trends in the outcomes of Chapter 11 bankruptcy reorganization filings, over the period 1981-2013, that will, we expect, contribute to the current investigation by the “bankruptcy industry” on the possible revision of the U.S. Bankruptcy Code. Such questions as to the relative success, or not, of the Chapter 11 process, the time in bankruptcy for various outcomes of the process, the impact of prepackaged restructuring on the outcomes and the recovery rate to various creditor classes will be examined.

Keywords: Chapter 11, Bankruptcy-Reorganization, Hedge Funds, Distressed Debt Markets, Recovery Rates

Suggested Citation

Altman, Edward I., The Role of Distressed Debt Markets, Hedge Funds and Recent Trends in Bankruptcy on the Outcomes of Chapter 11 Reorganizations (November 14, 2013). Available at SSRN: https://ssrn.com/abstract=2354352

Edward I. Altman (Contact Author)

New York University (NYU) - Salomon Center ( email )

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New York, NY 10012
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New York University (NYU) - Department of Finance ( email )

Stern School of Business
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New York, NY 10012-1126
United States

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