This course about debt. What happens when a firm is overburdened with debt or cannot meet its obligations as they come due? How are losses to be allocated? How can the firm’s assets be redeployed for productive use? How can competing creditors be bound to an arrangement about the future of the firm? This course examines methods of dealing with troubled debt and provides a general introduction to bankruptcy law, covering Chapters 7 and 11 of the Federal Bankruptcy Code. Bankruptcy law provides a lens through which to explore the American credit economy. An understanding of bankruptcy is important not just for the restructuring specialist, but also for the transactional lawyer and the litigator, as bankruptcy law provides the background term for nearly all business transactions and determines the collectability of judgments. The course will address not only bankruptcy law, but also how it affects transactional planning and structures outside of bankruptcy. Beyond the Bankruptcy Code itself, topics covered include distressed debt trading, financial derivatives, junk bonds, leveraged buyouts, securitization, valuation, and workouts. Reference will be made to sovereign debt restructuring and consumer bankruptcy, but the course is primarily focused on business bankruptcy. No laptops.
Corporations recommended, but not required.