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How to sell a (bankrupt) company?

By Francesca Cornelli and Leonardo Felli

Abstract

The restructuring of a bankrupt company often entails the sale of such company. This paper suggests a way to sell the company that maximizes the creditors‘ proceeds. The key to this proposal is the option left to the creditors to retain a fraction of the shares of the company. Indeed, by retaining the minority stake, creditors reduce to a minimum the rents that the sale of the company leaves in the hands of the buyer

Topics: HG Finance
Publisher: CESifo
Year: 2000
OAI identifier: oai:eprints.lse.ac.uk:4688
Provided by: LSE Research Online
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