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

6 Pages Posted: 13 Nov 2009 Last revised: 26 Jan 2010

See all articles by George W. Kuney

George W. Kuney

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

Michael St. James

St. James Law - San Francisco Office

Multiple version iconThere are 2 versions of this paper

Date Written: November 11, 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, reorganization, too big to fail, automobile companies

JEL Classification: K12, K29

Suggested Citation

Kuney, George W. and St. James, Michael, A Proposal for Chapter 10: Reorganization for 'Too Big to Fail' Companies (November 11, 2009). University of Tennessee Legal Studies Research Paper No. 88. Available at SSRN: https://ssrn.com/abstract=1503991 or http://dx.doi.org/10.2139/ssrn.1503991

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

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)

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