Publications

September 1997 (Revised August 2007)
Case

Bankruptcy and Restructuring at Marvel Entertainment Group

By: Benjamin C. Esty and Jason Auerbach

Marvel Entertainment Group is the leading comic book publisher in the United States, with superheros like Spider-Man, the Incredible Hulk, the X-Men, and Captain America. It is also one of the leading manufacturers of sports and entertainment trading cards under the... View Details

Keywords: Restructuring; Decision Choices and Conditions; Borrowing and Debt; Insolvency and Bankruptcy; Governance Controls; Courts and Trials; Planning; Entertainment and Recreation Industry

April 1997 (Revised February 2001)
Case

Mexico in Debt

By: Richard H.K. Vietor and Eilene Zimmerman

Describes Mexico's political and economic system in the 1960s and 1970s. Focuses on: 1) the causes of the debt crisis in 1982; 2) elements of President de la Madrid's restructuring efforts between 1982-88; President Salinas's attempts to complete restructuring and... View Details

Keywords: Restructuring; Economic Systems; Financial Crisis; Inflation and Deflation; Macroeconomics; Borrowing and Debt; Government and Politics; Mexico

March 1997
Article

Transactions Costs and Capital Structure Choice: Evidence from Financially Distressed Firms

By: S. C. Gilson

This study provides evidence that transactions costs discourage debt reductions by financially distressed firms when they restructure their debt out of court. As a result, these firms remain highly leveraged and one-in-three subsequently experience financial distress.... View Details

Keywords: Cost; Capital Structure; Decision Choices and Conditions; Information; Finance; Business Ventures

January 1994
Case

National Convenience Stores, Inc.

By: Steven R. Fenster, Stuart C. Gilson and Roy Burstin

National Convenience Stores seeks to emerge from Chapter 11. Central to the nature of the reorganization plan is the company's determining enterprise value. The various constituencies (secured debt, unsecured debt, etc.) will seek to find an enterprise value that... View Details

Keywords: Capital Structure; Valuation; Restructuring; Strategic Planning; Borrowing and Debt; Food and Beverage Industry; Texas

April 1993 (Revised December 1994)
Case

American Express TRS Charge-Card Receivables

By: Andre F. Perold and Kuljot Singh

American Express (TRS) Co. is considering a proposal to securitize a portion of their consumer charge-card receivables portfolio. In the past, they have relied exclusively on a captive finance subsidiary, Credco, to perform this function. The proposed securitization... View Details

Keywords: Credit Cards; Restructuring; Borrowing and Debt; Financial Management; Financial Strategy; Debt Securities; Travel Industry

1993
Chapter

Troubled Debt Restructurings: An Empirical Analysis of Private Reorganization of Firms in Default

By: S. C. Gilson

Keywords: Insolvency and Bankruptcy; Restructuring; Borrowing and Debt

1992
Chapter

Troubled Debt Restructurings: An Empirical Analysis of Private Reorganization of Firms in Default

By: S. C. Gilson, J. Kose and L.H.P. Kang

Keywords: Insolvency and Bankruptcy; Borrowing and Debt; Restructuring

February 1991
Case

Burlington Northern: The ARES Decision (B)

By: Julie H. Hertenstein and Robert S. Kaplan

The ARES team formally proposes that Burlington Northern implement the ARES system. The project meets resistance. In light of financial restructuring and high level of debt, executives wonder whether the company can afford ARES. Weak links during the ARES development... View Details

Keywords: Accounting Audits; Restructuring; Cost vs Benefits; Decision Choices and Conditions; Borrowing and Debt; Capital Budgeting; Projects; Technology Adoption; Service Industry

October 1990
Article

Bankruptcy, Boards, Banks, and Blockholders: Evidence on Changes in Corporate Ownership and Control When Firms Default

By: S. C. Gilson

In 111 publicly traded firms that either file for bankruptcy or privately restructure their debt between 1979 and 1985, bank lenders frequently become major stockholders or appoint new directors. On average, only 46% of incumbent directors remain when bankruptcy or... View Details

Keywords: Insolvency and Bankruptcy; Governance; Banks and Banking; Change; Business Ventures; Ownership

October 1990
Article

Troubled Debt Restructurings: An Empirical Analysis of Private Reorganization of Firms in Default

By: S. C. Gilson, J. Kose and L. H. P. Kang

This study investigates the incentives of financially distressed firms to restructure their debt privately rather than through formal bankruptcy. In a sample of 169 financially distressed companies, about half successfully restructure their debt outside of Chapter 11.... View Details

Keywords: Theory; Insolvency and Bankruptcy; Restructuring

1990
Book

Market-Based Debt Reduction for Developing Countries: Principles and Prospects

By: K. Froot, S. Claessens, I. Diwan and P. Krugman

Keywords: Debt Reduction; Chapter 7; Default; Debt Restructuring; Sovereign Debt; Debt Crisis; Borrowing and Debt

December 1989
Article

LDC Debt: Forgiveness, Indexation, and Investment Incentives

By: K. A. Froot, D. Scharfstein and J. Stein

Keywords: Debt Reduction; Chapter 7; Default; Debt Restructuring; Borrowing and Debt

February 1989
Article

Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity Relief

By: K. A. Froot

Keywords: Chapter 7; Debt Reduction; Default; Sovereign Debt; Debt Crisis; Debt Restructuring; Borrowing and Debt

November 1988 (Revised September 1991)
Case

Simmons Japan Ltd.

By: W. Carl Kester and Richard P. Melnick

Concerns the first leveraged buyout to occur in Japan. Analytic tasks include a valuation of the company and an assessment of its debt capacity. Also provides opportunities to discuss agency costs associated with alternative capital and equity ownership structures,... View Details

Keywords: Leveraged Buyouts; Restructuring; Borrowing and Debt; Capital Structure; Cost; Equity; Production; Valuation; Japan; United States