A Proposal for Chapter 10: Reorganization for 'Too Big to Fail' Companies

American Bankruptcy Journal, March 2009

Posted: 23 Mar 2009

See all articles by Michael St. James

Michael St. James

St. James Law - San Francisco Office

George W. Kuney

University of Tennessee College of Law; Clayton Center for Entrepreneurial Law

Multiple version iconThere are 2 versions of this paper

Date Written: March 9, 2009

Abstract

The Bankruptcy Code provides tools that are well-suited to addressing and resolving the financial problems faced by the "Big Three" automakers and other "too big to fail" companies ("TBTF Companies"). But Chapter 11 as it presently exists would inevitably impose great harm on vendors and other interrelated businesses resulting in a ripple effect causing cascading business failures and lay-offs. With comparatively minor changes to the Bankruptcy Code, enacted in the form of a streamlined new Chapter 10, however, TBTF Companies could use the powerful tools of the bankruptcy process to remedy their core financial problems without imposing on society unnecessary and harmful cascading business failures.

Keywords: Bankruptcy, Chapter 11, Chapter 10, TBTF, Too Big To Fail, Automobile Manufacturers

JEL Classification: G33, G34, G35

Suggested Citation

St. James, Michael and Kuney, George W., A Proposal for Chapter 10: Reorganization for 'Too Big to Fail' Companies (March 9, 2009). American Bankruptcy Journal, March 2009 . Available at SSRN: https://ssrn.com/abstract=1366390

Michael St. James

St. James Law - San Francisco Office ( email )

155 Montgomery Street
Suite 1004
San Francisco, CA 94104
United States
415-391-7566 (Phone)
415-391-7568 (Fax)

George W. Kuney (Contact Author)

University of Tennessee College of Law ( email )

1505 West Cumberland Avenue
Knoxville, TN 37996
United States
865-974-2500 (Phone)

HOME PAGE: http://www.law.utk.edu/faculty/kuney/index.shtml

Clayton Center for Entrepreneurial Law ( email )

The Boyd Center for Business and Economic Research
Knoxville, TN 37996
United States

HOME PAGE: http://www.law.utk.edu/faculty/kuney/index.shtml

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