Chapter 11 Reorganization: Creative Management Or An Abusive Of The System?
This study is now available at http://commons.und.edu/theses/4411
Recent developments within the Bankruptcy Court system are controversial. Several of the largest corporations in the United States are currently undergoing reorganization. To some companies, Chapter 11 is the only way out of staggering debt, to others Chapter 11 is a means to stall liability suits, and to still others Chapter 11 represents a way to force wage concessions in the place of honoring union contracts. The entire Bankruptcy Court system itself has been successfully challenged as being Unconstitutional, and continues to operate only by a special dispensation from Congress.
When these developments are placed in an historical context, they point to a critical period in the evolution of bankruptcy law. Observant reporters of the business world have followed the more important cases in Chapter11, and have written about them extensively in magazines, The Wall Street Journal and in legal textbooks. This paper consolidates that information, organizing the more pertinent facts in a manner that facilitates an understanding of the bankruptcy system. Three cases are examined and their impact upon American business law is put in perspective. Chapter 11 Reorganization represents a way for society to balance the need for continuing employment against the need to protect creditors' rights. But the manner in which certain corporations are taking advantage of the provisions of Chapter 11 begs the question: mentor an abuse of the system? of both. X Is this creative manageThe answer is a little