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How to sell a (bankrupt) company?

Cornelli, Francesca and Felli, Leonardo (2000) How to sell a (bankrupt) company? 292. CESifo, Munich, Germany. (Unpublished)

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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.

Item Type: Monograph (Working Paper)
Official URL: http://www.CESifo.de
Additional Information: © 2000 Francesca Cornelli and Leonardo Felli
Library of Congress subject classification: H Social Sciences > HG Finance
Journal of Economic Literature Classification System: G - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy; Liquidation
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
Sets: Research centres and groups > Financial Markets Group (FMG)
Collections > Economists Online
Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Collections > LSE Financial Markets Group (FMG) Working Papers
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 292
Date Deposited: 07 May 2008 10:59
URL: http://eprints.lse.ac.uk/4688/

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