Hedge Funds and Chapter 11

• 成果类型: Article
• 署名作者: Jiang, Wei; Li, Kai; Wang, Wei
• 署名单位: Columbia University; University of British Columbia; Queens University - Canada
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2012.01724.x
• 发表日期: 2012
• 页码: 513-559
• 关键词: ABSOLUTE PRIORITY RULE; BANKRUPTCY RESOLUTION; corporate governance; empirical-analysis; debt structure; deviations; investors; Activism; auctions; DESIGN

摘要

This paper studies the presence of hedge funds in the Chapter 11 process and their effects on bankruptcy outcomes. Hedge funds strategically choose positions in the capital structure where their actions could have a bigger impact on value. Their presence, especially as unsecured creditors, helps balance power between the debtor and secured creditors. Their effect on the debtor manifests in higher probabilities of the latter's loss of exclusive rights to file reorganization plans, CEO turnover, and adoptions of key employee retention plan, while their effect on secured creditors manifests in higher probabilities of emergence and payoffs to junior claims.