The ownership and trading of debt claims in Chapter 11 restructurings

• 成果类型: Article
• 署名作者: Ivashina, Victoria; Iverson, Benjamin; Smith, David C.
• 署名单位: Harvard University; National Bureau of Economic Research; Northwestern University; University of Virginia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.09.002
• 发表日期: 2016
• 页码: 316-335
• 关键词: Chapter 11; Ownership structure; Distressed debt; Trading in bankruptcy

摘要

Using a novel data set that covers individual debt claims against 136 bankrupt US companies and includes information on a subset of claims transfers, we provide new empirical insight regarding how a firm's debt ownership relates to bankruptcy outcomes. Firms with higher debt concentration at the start of the case are more likely to file prearranged bankruptcy plans, to move quickly through the restructuring process, and to emerge successfully as independent going concerns. Moreover, higher ownership concentration within a debt class is associated with higher recovery rates to that class. Trading of claims during bankruptcy concentrates ownership further, but this trading is not associated with subsequent improvements in bankruptcy outcomes and could, at the margin, increase the likelihood of liquidation. (C) 2015 Elsevier B.V. All rights reserved.