Prerequisite: None

Exam Type: In Class

This basic bankruptcy course covers the major facets of bankruptcy and out-of-court corporate restructurings. Bankruptcy and restructuring law and practice influence business financing transactions. Much of the deal-making in a financing transaction is negotiated in anticipation of a possible reorganization in Chapter 11 or of a corporate restructuring in its shadow. I.e., corporate lawyers often negotiate loans for their business clients; regulators, creditors, and employees of shaky companies want to know what will happen if the company fails. For many lawyers, contact with bankruptcy law is anticipatory or in an out-of-court restructuring and not in front of the bankruptcy judge. When feasible, students will read not just bankruptcy court opinions and the Bankruptcy Code, but materials that financing lawyers use day-to-day: a loan agreement, a prospectus, and a complaint in a loan dispute. In addition, to restructuring basics, I expect that we will consider ongoing bankruptcy disputes involving mass torts, government action, and labor contracts. Students will ordinarily participate in a simulated Chapter 11 reorganization.