FINAN 6570 - Financial Distress and Corporate Restructuring

The course will examine important issues in corporate bankruptcy and distressed restructurings. Primary issues will be managers' choices when faced with financial distress and the interplay between creditors and the firm in resolving distress. We will examine investment banking techniques used to enhance the firm value in financial distress, alternative methods of reorganizing a firm outside of bankruptcy, and corporate bankruptcy. Understanding the legal framework of bankruptcy is important even for firms which avoid bankruptcy because the rules exert an important influence on the behavior of both creditors and debtor firms. Classes will be a mixture of lectures and cases.