e-journal

HOW THE CHRYSLER REORGANIZATION DIFFERED FROM PRIOR PRACTICE

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ABSTRACT
Chrysler, a failing auto manufacturer, was reorganized in a controversial chapter 11 in
2009. Financial creditors were paid a quarter of the amount owed them, while other
creditors were paid more. The reorganization’s defenders asserted, among other things,
that the proceeding and the sale structure was typical of prior practice. To see if this view
fits the evidence, we examine all prior large section 363 sales for key financial ratios that
can show whether a priority distortion is very unlikely. For example, in a cash sale with the
buyer not assuming any debt of the bankrupt, the sale itself cannot ordinarily disrupt
standard priorities. The Wilcoxon signed-rank test for these ratios indicates that Chrysler
significantly differed from prior practice. It used less cash and the buyer assumed more
debt than has been typical. Examining restricted samples, such as prior section 363 sales
of firms with high unfunded pension obligations, yields similar results. The evidence here
thus does not support the claim that the Chrysler reorganization fit the preexisting
pattern of section 363 sales.

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Informasi Detail

Judul Seri

Journal of Legal Analysis

No. Panggil

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Penerbit

Oxford : Oxford University Press on behalf of The John M. Olin Center for Law., 2013

Deskripsi Fisik

Winter 2013: Volume 5, Number 2 ~ Journal of Legal Analysis

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

HUKUM

Info Detail Spesifik

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Pernyataan Tanggungjawab

agus

Versi lain/terkait

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