Exam 12: Restructuring in Bankruptcy

A reorganization plan in Chapter 11 is part of a larger document called a disclosure statement.

The debtor in possession is another name for the bankrupt company.

DIP financing refers to financing of leveraged buyouts.

Which of the following is the largest bankruptcy in history?

Which of the following are drivers of economic failure?

A prepackaged bankruptcy may also provide tax benefits because net operating losses are treated differently in a workout than in a bankruptcy

Andrade and Kaplan found that the causes of financial distress can be traced to:

In Chapter 11, when an automatic stay has been granted creditors cannot seize the assets of bankrupt companies without getting court approval.

Laws regulating corporate reorganization in bankruptcy are more liberal from the corporate debtor's perspective in the United States than in Europe and Canada.

The Crystal Oil Company was the first major prepackaged bankruptcy.

George and Hwang found that firms with high distress costs had:

Answer: Larger companies tend to do better in Chapter 11 bankruptcy than smaller ones.

Answer: Creditors seeking payments from a company in reorganization bankruptcy in the United States must file:

In the United States, the rules governing corporate reorganizations are detailed in which part of the bankruptcy law?

The initial exclusive period is how many days:

In the United States, a company may only file for Chapter 11 bankruptcy protection one time.

Which of the following bankruptcies were related to fraud?

Dun & Bradstreet showed that which of the following are causes of business failure?

Denis and Denis show that while poor deal pricing was a factor in the failure of firms in the very early 1990s, the 1990-1991 recession was the primary cause.