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Chapter 11 'Failure'

18 Pages Posted: 9 Apr 2009 Last revised: 8 May 2009

Stephen J. Lubben

Seton Hall University - School of Law

Date Written: April 8, 2009

Abstract

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.

Keywords: Chapter 11, bankruptcy, reorganization, financial distress, Lubben

JEL Classification: M10

Suggested Citation

Lubben, Stephen J., Chapter 11 'Failure' (April 8, 2009). Seton Hall Public Law Research Paper No. 1375163. Available at SSRN: https://ssrn.com/abstract=1375163 or http://dx.doi.org/10.2139/ssrn.1375163

Stephen J. Lubben (Contact Author)

Seton Hall University - School of Law ( email )

One Newark Center
Newark, NJ 07102-5210
United States
973-642-8857 (Phone)

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