(Formerly Law 248) This course examines the reorganization of a financially distressed company under chapter 11 of the Bankruptcy Code. Among other things, the course follows a fictitious company through several stages of a business turnaround and financial restructuring, including an out-of-court workout, a chapter 11 filing, selected chapter 11 operating issues, and the negotiation, formulation and confirmation of a plan of reorganization. In addition, the course follows current developments in the bankruptcy area, primarily through reports in the media. For example, in recent years the course has followed selected issues as they have arisen in actual chapter 11 cases (e.g., General Motors, Chrysler Corporation, Caesars Entertainment Operating Co, Lehman Brothers, SunEdison) and the effects of bankruptcy on various industries (e.g., oil & gas, coal mining, retail, technology, airlines, automotive). The course also touches on various issues that often arise in a reorganization setting, such as valuation, leveraged buyouts, debt and derivative instruments, and distressed debt trading. Elements used in grading: Class participation and final exam.
