The paper grows out of two observed trends in corporation bankruptcy practice: first, reorganizations are increasingly structured by deals agreed to by insiders (including controlling creditors) before cases are filed, and bankruptcy courts have shown a willingness to adopt these deals within...

Sovereignty and sovereign immunity occur along a continuum. The kings and queens of old at one end; the North Hudson Sewerage Authority and its ilk at another. The need for a bankruptcy system to address financial distress varies inversely with a sovereign's place on the continuum. Queens and...

Puerto Rico has about $72.6 billion in outstanding debt, and its public corporations have about $24.8 billion of that debt. But Puerto Rico's public corporation are not permitted to file for municipal bankruptcy under chapter 9 of the Bankruptcy Code.To solve this problem, Puerto Rico recently...

Corporate debtors facing financial distress have a choice: file bankruptcy in their home jurisdiction or file in the United States. And some number of foreign corporations do file bankruptcy petitions in the United States.We expect this trend to increase in the coming years for two simple...

The paper provides a cutting edge look at the ability of existing (and soon to be enacted) legal structures to restructure a financially troubled global business. The basic problem rests on the simple fact that legal systems are country-specific, while businesses operate world-wide. To avoid...