What We 'Know' About Chapter 11 Cost is Wrong

Lubben, Stephen J.

doi:10.2139/ssrn.1718047

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What We 'Know' About Chapter 11 Cost is Wrong

Fordham Journal of Corporate and Financial Law, Forthcoming

Seton Hall Public Law Research Paper No. 1718047

53 Pages Posted: 2 Dec 2010 Last revised: 25 May 2011

See all articles by Stephen J. Lubben

Stephen J. Lubben

Seton Hall Law School

Date Written: November 30, 2010

Abstract

Among the collective wisdom about large corporate bankruptcy cases, the following points are almost undisputed: Longer chapter 11 cases cost more; Prepackaged chapter 11 cases cost less; Cases filed in New York or Delaware cost more; Fee examiners control the costs of big chapter 11 cases.

But each of these points is wrong, and in most cases entirely backward. And this article provides empirical evidence to show why.

Keywords: Chapter 11, Direct Costs, Bankruptcy, Financial Distress, Professional Fees, Attorneys Fees

JEL Classification: K22, K41, K42, L84

Suggested Citation: Suggested Citation

Lubben, Stephen J., What We 'Know' About Chapter 11 Cost is Wrong (November 30, 2010). Fordham Journal of Corporate and Financial Law, Forthcoming, Seton Hall Public Law Research Paper No. 1718047, Available at SSRN: https://ssrn.com/abstract=1718047 or http://dx.doi.org/10.2139/ssrn.1718047