Table of Contents

Foreword the Honorable Richard A. Posner; Part I. The Role of Credit: Editor's introduction; 1.1 Leverage, Nobel prize lecture (1990) Merton H. Miller; 1.2 Agency costs of free cash flow, corporate finance and takeovers Michael C. Jensen; 1.3 A theory of loan priorities Alan Schwartz; Part II. Bankruptcy as a Reflection of the Creditors' Implicit Bargain: Editors' introduction; 2.1 A world without bankruptcy Douglas G. Baird; 2.2 Bankruptcy, non-bankruptcy entitlements, and the creditors' bargain Thomas H. Jackson; 2.3 Translating assets and liabilities to the bankruptcy forum Thomas H. Jackson; 2.4 Bankruptcy policy Elizabeth Warren; 2.5 Loss distribution, forum shopping, and bankruptcy Douglas G. Baird; Part III. Beyond the Basic Creditors' Bargain: Editors' introduction; 3.1 Bargaining after the fall and the contours of the absolute priority rule Douglas G. Baird and Thomas H. Jackson; 3.2 On the nature of bankruptcy Thomas Jackson and Robert E. Scott; 3.3 A simple noncooperative bargaining model of corporate reorganizations Douglas Baird and Randal C. Picker; 3.4 On the nature of bankruptcy Mark J. Roe; 3.5 Bankruptcy and risk allocation Barry E. Adler; 3.6 The corporate bankruptcy decision Michelle J. White; 3.7 Bargaining over equity's share in the bankruptcy reorganization of large, publicly held companies Lynn M. LoPucki and William C. Whitford; 3.8 Bankruptcy resolution Lawrence A. Weiss; 3.9 The costs of conflict resolution and financial distress David Cutler and Lawrence Summers; 3.10 Survey of evidence on business bankruptcy Michelle J. White; Part IV. Workouts or Bargaining in the Shadow of Bankruptcy: Editors' introduction; 4.1 Managing default Stuart C. Gibson; 4.2 The economics of pre-packaged bankruptcy John McConnell and Henri Servaes; Part V. Alternatives to Bankruptcy and the Creditors' Bargain: Editors' introduction; 5.1 Corporate control and the politics of finance Michael C. Jensen; 5.2 The uneasy case for corporate reorganizations Douglas G. Baird; 5.3 Bankruptcy and debt Mark J. Roe; 5.4 A new approach to corporate reorganizations Lucian A. Bebchuk; 5.5 Debtor's choice Robert K. Rasmussen; 5.6 Is corporate bankruptcy efficient? Frank H. Easterbrook; 5.7 The voting prohibition in bond workouts Mark J. Roe; 5.8 Financial and political theories of American corporate bankruptcy Barry E. Adler; Part VI. Experience of Other Countries: Editors' introduction; 6.1 Lessons from comparison of US and UK insolvency codes Julian R. Franks and Walter N. Torous; 6.2 The costs of corporate bankruptcy Michelle J. White; 6.3 Should we abolish Chapter 11? Theodore Eisenberg and Shoichi Tagashira; 6.4 The role of banks in reducing the costs of financial distress in Japan Takeo Hoshi, Anil Kashyap, and David Sharfstein.