What We 'Know' About Chapter 11 Cost is Wrong
53 Pages Posted: 2 Dec 2010 Last revised: 25 May 2011
Date Written: November 30, 2010
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