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Corporate Restructuring

Montgomery Ward's, Trans World Airlines, United Artists and Zenith Electronics: These are a few of the well known, multi-billion dollar corporations that have experienced distress in a softening economy. This course is based on the narrative of a large corporation as it moves through the stages of an attempted business workout and eventual bankruptcy reorganization. Actual case documents will be utilized whenever possible. Tracking the drama of this real narrative, students will explore the prebankruptcy dynamics as the troubled company struggles to obtain new capital while staving off impatient trade creditors. The intricate maneuvers of an attempted out-of-court workout will be examined as an illustration of how giant corporations seek to restructure their operations in the context of debtor-creditor laws. Faced with failed efforts to achieve this business workout, the narrative moves to an examination of the corporation's use of a voluntary petition to seek the protection of chapter 11 of the United States Bankruptcy Code. As the vehicle whereby creditors' claims, ownership and control of a troubled business are resolved in a formal and occasionally acrimonious fashion, the Bankruptcy Code restructures the relationships among creditors of the corporation and between these claimants and the shareholders of the corporation (the debtor). Study of this stage of the narrative involves close examination of the following events: the debtor's strategic use of "first-day" pleadings; the breathing spell from creditor activity created by the automatic stay; the dynamics of the creditors' committee's and secured creditors' interaction with the debtor; the debtor's efforts to obtain financing; rejection of executory contracts and reclassification of bankruptcy claims using voiding powers; valuation and restructuring of the corporation as part of the debtor's efforts to establish the feasibility of its reorganization plan; the debtor's drafting of the plan; and the negotiations and legal steps involved in its attempt to confirm its plan. Students who have taken Chapter 11 Bankruptcy may not take Corporate Restructuring: Bankruptcy Reorganizations. MODE OF INSTRUCTION: Structured around the narrative of an actual corporate bankruptcy, the course will focus on solving a series of real and hypothetical problems. Lectures and select guest speakers will supplement use of the problem method. GRADING & REQUIREMENTS: This three-hour course will be graded by written examination. Participation and performance in class discussion will be factored into the grade. There are no formal course pre-requisites. COURSE MATERIALS: - Instructor-prepared course materials. - Select Commercial Statutes:


Catalog Number: BUSCOM 667
Practice Areas: Business, Corporate,Trans Area


Course History

Spring 2014
Title: Corporate Restructuring
Faculty: Richards, Geoffrey A. (courses  |  homepage)
Francis, Clinton William (courses  |  homepage)
Section: 1     Credits: 3.0
Capacity: 40     Actual: 34



Fall 2012
Title: Corporate Restructuring: Bankruptcy Reorganizations
Faculty: Richards, Geoffrey A. (courses  |  homepage)
Francis, Clinton William (courses  |  homepage)
Section: 1     Credits: 3.0
Capacity: 40     Actual: 36



Fall 2011
Title: Corp. Restructuring: Workouts
Faculty: Richards, Geoffrey A. (courses  |  homepage)
Francis, Clinton William (courses  |  homepage)
Section: 1     Type: Lecture     Credits: 3.0
Capacity: 59     Actual: 38



Fall 2010
Title: Corporate Restructuring: Bankruptcy Reorganizations
Faculty: Richards, Geoffrey A. (courses  |  homepage)
Francis, Clinton William (courses  |  homepage)
Section: 1     Type: Lecture     Credits: 3.0
Capacity: 65     Actual: 43