Annabi, Amira; Breton, Michèle; François, Pascal - Centre Interuniversitaire sur le Risque, les Politiques … - 2010
We develop a contingent claims model of a firm in financial distress with a formal account for renegotiations under the Chapter 11 bankruptcy procedure. Shareholders and two classes of creditors (senior and junior) alternatively propose a reorganization plan subject to a vote. The bankruptcy...