The "new value exception" in single-asset reorganizations: a commentary on the Bjolmes auction procedure and its relationship to Chapter 11
Article Abstract:
The Bjolmes auction procedure, adapted from In re Bjolmes Realty Trust, applies to corporate bankruptcy reorganization plans involving only one asset. It allows creditors to devote new capital to a debtor's business in return for ensuring that a debtor's reorganization plan will allow repayment of debt. A Bjolmes remedy of renegotiating corporate debt by giving creditors extra interests in future corporate earnings serves the goal of the new value exception, through which bankruptcy courts suspend the absolute priority given to creditors to recover debt payment in order to keep the financially endangered company solvent.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1993
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Commentary on Mr. Case's and Mr. Harwood's paper: prepackaged reorganizations
Article Abstract:
The presentation by Stephen H. Case and Mitchell A. Harwood on prepackaged reorganizations and declaratory judgments is the subject of comments and open discussion by participants in a bankruptcy law symposium held at New York University School of Law, Apr 12, 1991. Comments suggest that the proposed streamlined bankruptcy procedure would not be fair to dissenting creditors, or that unless all agree, the procedure could be lengthened by appeals. Jurisdiction and other issues are also discussed.
Publication Name: Annual Survey of American Law
Subject: Law
ISSN: 0066-4413
Year: 1992
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