Bebchuk "A New Approach to Corporate Reorganization," 101
Harvard Law Review, 775 - 804 (1988). Reprinted in The Economics of
Corporate and Capital Markets Law (L. Bebchuk, ed., Cambridge University
Press, 1990); in The Korea Forum on International Trade and Business
Law 1993 (in Korean); and in Corporate Bankruptcy (J. Bhandari, ed.,
MIT Press, 1995).
this Article, Professor Bebchuk proposes a new method of dividing
the reorganization pie among the participants in corporate reorganizations.
This method, he argues, can address the substantial efficiency and
fairness problems that afflict the existing process of division.
Under the proposed method, participants will receive certain rights
with respect to the reorganized company's securities: these rights
will be designed so that, whatever the reorganization value is,
no participant will have a basis for complaining that he is receiving
less than the value to which he is entitled. Although Professor
Bebchuk proposes the method as a basis for law reform, he shows
that it also can be used under the existing reorganization rules.
updated: Dec. 2002
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