Chapter 11 'Failure'
Stephen J. Lubben
Seton Hall University - School of Law
April 8, 2009
Seton Hall Public Law Research Paper No. 1375163
Nearly thirty years of chapter 11 scholarship offers little insight into the reasons why certain firms are unable to confirm a reorganization plan. This paper offers the first empirical model of why firms fail in chapter 11. Using a database of 945 chapter 11 cases filed in 2004, and a simple definition of chapter 11 failure as any case that is converted to chapter 7 or dismissed, I show that some of the most significant predictors of "failure" are observable on the first day of a chapter 11 case.
Number of Pages in PDF File: 18
Keywords: Chapter 11, bankruptcy, reorganization, financial distress, Lubben
JEL Classification: M10
Date posted: April 9, 2009 ; Last revised: May 8, 2009