How to Sell a (Bankrupt) Company

Francesca Cornelli and Leonardo Felli

No 292, CESifo Working Paper Series from CESifo

Abstract: The restructuring of a bankrupt company often entails the sale of such company. This paper suggests a way to sell the company that maximizes the creditors' proceeds. The key to this proposal is the option left to the creditors to retain a fraction of the shares of the company. Indeed, by retaining the minority stake, creditors reduce to a minimum the rents that the sale of the company leaves in the hands of the buyer.

Keywords: Bankruptcy; control stakes; auction (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (4)

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https://www.cesifo.org/DocDL/cesifo_wp292.pdf (application/pdf)

Related works:
Journal Article: How to Sell a (Bankrupt) Company (2012)
Working Paper: How to sell a (bankrupt) company? (2010)
Working Paper: How to Sell a (Bankrupt) Company? (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_292

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