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How to sell a (bankrupt) company?

Cornelli, Francesca and Felli, Leonardo (2000) How to sell a (bankrupt) company? . CESifo, Munich, Germany.

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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.

Item Type: Monograph (Working Paper)
Official URL:
Additional Information: © 2000 Francesca Cornelli and Leonardo Felli
Divisions: Financial Markets Group
Subjects: H Social Sciences > HG Finance
JEL classification: G - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy; Liquidation
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
Date Deposited: 07 May 2008 10:59
Last Modified: 16 May 2024 11:24

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