Title: Debtor's choice: A menu approach to corporate bankruptcy
Abstract: Any attempt to justify bankruptcy law from a normative perspective should begin with the observation that bankruptcy law is a term of the contract between the firm and those who extend credit to it. To see why this is so, consider the position of a lender deciding whether to extend credit to the firm and, if so, at what price. The lender will compare the return that it can expect to receive from the firm to the return that it could expect to receive from its best alternate investment. This sets the minimum price that the lender will agree to in order to accept the contract.
Publication Year: 1996
Publication Date: 1996-03-29
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
Cited By Count: 115
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