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  • January 2023
  • Teaching Note

Bankruptcy in the City of Detroit

By: Kristin Mugford and Annelena Lobb
Teaching Note for HBS Case No. 215-070. View Details
Keywords: Finance; Restructuring
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Mugford, Kristin, and Annelena Lobb. "Bankruptcy in the City of Detroit." Harvard Business School Teaching Note 223-063, January 2023.
  • October 1991 (Revised January 1992)
  • Background Note

Note on Bankruptcy in the United States

By: Timothy A. Luehrman
An introduction to, and summary of the laws, rules, and procedures established in the United States for settling the claims of creditors on a bankrupt company. Covers both Chapter 7 liquidations and Chapter 11 reorganizations. View Details
Keywords: Insolvency and Bankruptcy; United States
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Luehrman, Timothy A. "Note on Bankruptcy in the United States." Harvard Business School Background Note 292-062, October 1991. (Revised January 1992.)
  • August 2020 (Revised December 2020)
  • Case

Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States

By: Laura Alfaro, Mauricio Larrain, Carlos Vilches and Sarah Jeong
On May 26, 2020, Latam Airlines became the largest airline in the world to be driven to bankruptcy by COVID-19. With a complex debt structure and international investor composition, the company decided to file for bankruptcy protection in the United States, which... View Details
Keywords: Airlines; Pandemic; Coronavirus Pandemic; Health Pandemics; Air Transportation; Insolvency and Bankruptcy; Capital Markets; Strategy; Latin America; Chile; United States
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Alfaro, Laura, Mauricio Larrain, Carlos Vilches, and Sarah Jeong. "Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States." Harvard Business School Case 321-027, August 2020. (Revised December 2020.)
  • 20 Jul 2021
  • Research & Ideas

Bankruptcy Spells Death for Too Many Businesses

Chapter 11 bankruptcy protection is supposed to allow companies to shed debt and get a fresh start. Ideally, creditors recover most of what they’re owed as the restructured firm begins turning a profit. Yet, more companies are liquidated... View Details
Keywords: by Rachel Layne
  • 2023
  • Working Paper

Life After Death: A Field Experiment with Small Businesses on Information Frictions, Stigma, and Bankruptcy

By: Shai Benjamin Bernstein, Emanuele Colonnelli, Mitchell Hoffman and Benjamin Iverson
In a randomized control trial (RCT) with U.S. small businesses, we document that a large share of firms are not well-informed about bankruptcy. Many assume that bankruptcy necessarily entails the death of a business and do not know about Chapter 11 bankruptcy, where... View Details
Keywords: Small Business; Insolvency and Bankruptcy; Knowledge Dissemination; Outcome or Result
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Bernstein, Shai Benjamin, Emanuele Colonnelli, Mitchell Hoffman, and Benjamin Iverson. "Life After Death: A Field Experiment with Small Businesses on Information Frictions, Stigma, and Bankruptcy." NBER Working Paper Series, No. 30933, February 2023.
  • January 1995 (Revised March 1997)
  • Case

A Bankruptcy Problem from the Talmud

Describes a problem of bankruptcy, following the treatment in the 2,000-year-old Babylonian Talmud. A person dies, leaving a number of debts that total more than the size of the estate. The question is: How should the estate be divided among the creditors? The case... View Details
Keywords: Analysis; Insolvency and Bankruptcy; Economics
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Brandenburger, Adam M., Harborne W. Stuart Jr., and Barry Nalebuff. "A Bankruptcy Problem from the Talmud." Harvard Business School Case 795-087, January 1995. (Revised March 1997.)
  • Article

Myth and Measurement—The Case of Medical Bankruptcies

By: Raymond Kluender, Carlos Dobkin, Amy Finkelstein and Matthew Notowidigdo
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Kluender, Raymond, Carlos Dobkin, Amy Finkelstein, and Matthew Notowidigdo. "Myth and Measurement—The Case of Medical Bankruptcies." New England Journal of Medicine 378, no. 12 (March 22, 2018): 1076–1078.
  • March 2009
  • Background Note

Note on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)

By: Stuart C. Gilson
In 2005, new legislation was passed by the U.S. Congress and signed into law by the President that introduced a number of major amendments to U.S. bankruptcy law, affecting both business and consumer bankruptcies. This legislation, called the Bankruptcy Abuse... View Details
Keywords: Government Legislation; Restructuring; Personal Finance; Laws and Statutes; Insolvency and Bankruptcy; Corporate Finance
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Gilson, Stuart C. "Note on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)." Harvard Business School Background Note 209-133, March 2009.
  • September 1997 (Revised June 1999)
  • Teaching Note

Bankruptcy and Restructuring at Marvel Entertainment Group, Teaching Note

By: Benjamin C. Esty
Teaching Note for (9-298-059). View Details
Keywords: Publishing Industry
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Esty, Benjamin C. "Bankruptcy and Restructuring at Marvel Entertainment Group, Teaching Note." Harvard Business School Teaching Note 298-028, September 1997. (Revised June 1999.)
  • December 2003
  • Article

The Social Cost of Fraud and Bankruptcy

By: Joseph L. Bower and Stuart C. Gilson
Keywords: Cost; Society; Insolvency and Bankruptcy
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Bower, Joseph L., and Stuart C. Gilson. "The Social Cost of Fraud and Bankruptcy." Harvard Business Review 81, no. 12 (December 2003): 20–22.
  • April 2022
  • Supplement

PG&E and the First Climate Change Bankruptcy

By: Stuart C. Gilson
Keywords: Chapter 11; Utilities; Liabilities; Restructuring; Insolvency and Bankruptcy; Debt Securities; Legal Liability; Climate Change; Utilities Industry; United States
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Gilson, Stuart C. "PG&E and the First Climate Change Bankruptcy." Harvard Business School Spreadsheet Supplement 222-714, April 2022.
  • July 1996 (Revised January 1997)
  • Case

Northwest Airlines: Brush with Bankruptcy (D)--June-July 1993

By: Leonard A. Schlesinger and Davis Dyer
Supplements the (A) case. View Details
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Schlesinger, Leonard A., and Davis Dyer. "Northwest Airlines: Brush with Bankruptcy (D)--June-July 1993." Harvard Business School Case 897-033, July 1996. (Revised January 1997.)
  • July 1996 (Revised January 1997)
  • Case

Northwest Airlines: Brush with Bankruptcy (C)--March-June 1993

By: Leonard A. Schlesinger and Davis Dyer
Supplements the (A) case. View Details
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Schlesinger, Leonard A., and Davis Dyer. "Northwest Airlines: Brush with Bankruptcy (C)--March-June 1993." Harvard Business School Case 897-032, July 1996. (Revised January 1997.)
  • July 1984
  • Supplement

Braniff International: The Ethics of Bankruptcy (B)

Supplements the (A) case. View Details
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Goodpaster, Kenneth E. "Braniff International: The Ethics of Bankruptcy (B)." Harvard Business School Supplement 385-002, July 1984.
  • July 2019
  • Article

Optimal Capital Structure and Bankruptcy Choice: Dynamic Bargaining vs Liquidation

By: Samuel Antill and Steven R. Grenadier
We model a firm’s optimal capital structure decision in a framework in which it may later choose to enter either Chapter 11 reorganization or Chapter 7 liquidation. Creditors anticipate equityholders’ ex-post reorganization incentives and price them into the ex-ante... View Details
Keywords: Default; Dynamic Bargaining; Capital Structure; Insolvency and Bankruptcy; Mathematical Methods
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Antill, Samuel, and Steven R. Grenadier. "Optimal Capital Structure and Bankruptcy Choice: Dynamic Bargaining vs Liquidation." Journal of Financial Economics 133, no. 1 (July 2019): 198–224.
  • February 2019 (Revised January 2021)
  • Case

Quiksilver Inc. and Oaktree Capital Management

By: Kristin Mugford and Mike Harmon
Sports lifestyle company Quiksilver filed for bankruptcy in September 2015. Oaktree is considering an additional investment in the company to facilitate the restructuring. Students must consider whether Oaktree should invest given the risks of the turnaround... View Details
Keywords: Bankruptcy; Bankruptcy Reorganization; Insolvency and Bankruptcy; Acquisition; Restructuring; Debt Securities; Transformation; Decision Making; Borrowing and Debt; Investment Return; Crisis Management; Negotiation; Retail Industry; Apparel and Accessories Industry; Consumer Products Industry; France; United States
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Mugford, Kristin, and Mike Harmon. "Quiksilver Inc. and Oaktree Capital Management." Harvard Business School Case 219-097, February 2019. (Revised January 2021.)
  • July 1996 (Revised January 1997)
  • Case

Northwest Airlines: Brush with Bankruptcy (A)--November 1992

By: Leonard A. Schlesinger and Davis Dyer
Deals with Northwest's financial crisis between the fall of 1992 and the following spring. Northwest's leaders face the problem of how to meet an impending $600 million payment on the 1989 LBO loan when the airline had run out of cash. Concludes by outlining options... View Details
Keywords: Air Transportation; Restructuring; Leveraged Buyouts; Crisis Management; Insolvency and Bankruptcy; Financial Strategy; Financial Crisis; Air Transportation Industry; United States
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Schlesinger, Leonard A., and Davis Dyer. "Northwest Airlines: Brush with Bankruptcy (A)--November 1992." Harvard Business School Case 897-030, July 1996. (Revised January 1997.)
  • April 2017 (Revised October 2023)
  • Supplement

Central European Distribution Corporation: Hostile Takeover, Bankruptcy Makeover

By: Stuart C. Gilson and Sarah L. Abbott
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Gilson, Stuart C., and Sarah L. Abbott. "Central European Distribution Corporation: Hostile Takeover, Bankruptcy Makeover." Harvard Business School Spreadsheet Supplement 217-708, April 2017. (Revised October 2023.)
  • 09 Feb 2015
  • Working Paper Summaries

Cashing Out: The Rise of M&A in Bankruptcy

Keywords: by Stuart Gilson, Edith Hotchkiss & Matthew Osborn
  • July 1996 (Revised January 1997)
  • Case

Northwest Airlines: Brush with Bankruptcy (B)--November 1992-March 1993

By: Leonard A. Schlesinger and Davis Dyer
Supplements the (A) case. View Details
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Schlesinger, Leonard A., and Davis Dyer. "Northwest Airlines: Brush with Bankruptcy (B)--November 1992-March 1993." Harvard Business School Case 897-031, July 1996. (Revised January 1997.)
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