Bankruptcy resolution

: an empirical investigation of debtor-in-possession financing, exit financing and corporate governance

Abstract

This dissertation investigates the impact of debtor-in-possession (DIP) financing and exit financing on the resolution of corporate bankruptcy. In order to accomplish the objective this study uses a large sample of bankrupt firms that filed for chapter 11 in the United States over the period 1998-2009. The analysis shows that the presence of post-petition financing is associated with an improvement of the odds of reorganization, with successful emergence from bankruptcy and an increase of the time spent in bankruptcy, effectively buying time to negotiate a successful restructuring. It also studies the effect on corporate governance by investigating top management turnover.

Date of Award	17 Jun 2013
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Diana Bonfim (Supervisor)