How to sell a (bankrupt) company?

Francesca Cornelli and Leonardo Felli

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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 can transfer the control of the company while reducing to a minimum the rents that the sale of the company leaves in the hands of the buyer.

Keywords: bankruptcy; auctions; transfer of control; private bene�fits. (search for similar items in EconPapers)
JEL-codes: D44 D82 G32 G33 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2010-12
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Downloads: (external link)
http://eprints.lse.ac.uk/4685/ Open access version. (application/pdf)

Related works:
Journal Article: How to Sell a (Bankrupt) Company (2012)
Working Paper: How to Sell a (Bankrupt) Company? (2001)
Working Paper: How to Sell a (Bankrupt) Company (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:4685

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