Publications

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April 2011 (Revised March 2021)
Case

BANEX and the No Pago Movement (A)

By: Shawn Cole and Baily Blair Kempner

This case examines Grassroots Capital's decision of whether or not to continue investing in a Bolivian microfinance bank that is suffering financial distress. View Details

Keywords: Base Of The Pyramid; Political Risk; Microfinance; Insolvency and Bankruptcy; Government and Politics; Investment; Risk Management; Financial Services Industry; Bolivia

13 Nov 2018
First Look

New Research and Ideas, November 13, 2018

718-510 The Rise and Rise (?) of Walmart (B): Kmart Declares Bankruptcy This case follows up on the competition between Kmart and Walmart as discussed in the (A) case. It... View Details

Keywords: Dina Gerdeman

26 Mar 2019
First Look

New Research and Ideas, March 26, 2019

peak in 1997, Kodak had a market value of $30 billion. Despite inventing the first digital camera, Kodak stumbled to capitalize on the new technology and by 2011 the company was in Chapter 11 bankruptcy... View Details

Keywords: Dina Gerdeman

01 Mar 2010
Op-Ed

A Golden Opportunity for Ford and GM

Having weathered the 2008 crisis without U.S. government support, Ford has $23 billion in cash in the bank and a lineup of eco-friendly automobiles to which U.S. consumers are gravitating. GM only emerged from View Details

Keywords: by Bill George; Auto

spring 2006
Article

All's Fair in Love, War & Bankruptcy?: Corporate Governance Implications of CEO Turnover in Financial Distress

By: Ethan S Bernstein

Prior discussions of management turnover during financial distress have examined bankrupt and non-bankrupt firms as distinct groupings with little overlap. Separately investigating rates of turnover in-bankruptcy and out-of-bankruptcy, without a direct comparison... View Details

Keywords: Management Succession; Insolvency and Bankruptcy; Corporate Governance

SSRN

13 Feb 2018
First Look

New Research and Ideas, February 13, 2018

design of our establishment-level analysis, our methods for distinguishing between leveraged buyouts (LBOs) and other private equity transactions, bankruptcy rates among firms acquired in LBOs, their... View Details

Keywords: Sean Silverthorne

05 Feb 2019
First Look

New Research and Ideas, February 5, 2019

accumulated $74 billion in debt and beginning in 2014, the island had withheld debt payments despite the commonwealth’s constitutional guarantee of its general obligation bonds. In turn, the island found itself effectively excluded from... View Details

Keywords: Dina Gerdeman

September 1992 (Revised March 2007)
Case

Kaiser Steel Corporation, 1987

By: Timothy A. Luehrman

Kaiser Steel entered Chapter 11 bankruptcy proceedings in early 1987. Nine months later it still faces several difficult obstacles to reorganization, including litigation, environmental liabilities, and pension and medical benefits for retired employees. Students are... View Details

Keywords: Business Plan; Insolvency and Bankruptcy; Employee Relationship Management; Resource Allocation; Opportunities; Conflict and Resolution; Steel Industry; United States

February 2004 (Revised April 2004)
Case

Great Atlantic & Pacific Tea Company, Inc., The

By: David F. Hawkins and Jacob Cohen

Analysts believe bankruptcy is a distinct possibility for A&P in the future. The company believes otherwise. View Details

Keywords: Forecasting and Prediction; Insolvency and Bankruptcy; Food and Beverage Industry; Food and Beverage Industry

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June 2011
Case

Shelley Capital and the Hedge Fund Secondary Market

By: Luis Viceira, Elena Corsi and Ruth Dittrich

An advisory company has to decide how to sell their client's hedge fund holdings in the secondary market, and thinks about their future. Shelley Capital was a a European advisory company operating in the hedge fund secondary market, a market that boosted in 2008 with... View Details

Keywords: Insolvency and Bankruptcy; Investment Funds; Marketing Strategy; Financial Crisis; Sales; Leadership Development; Financial Markets; Crisis Management; Business Processes; Risk and Uncertainty; Globalized Economies and Regions; Financial Services Industry; Service Industry; Europe

23 Feb 2018
Working Paper Summaries

Trade Creditors' Information Advantage

Keywords: by Victoria Ivashina and Benjamin Iverson

Article

Management Practices, Relational Contracts and the Decline of General Motors

By: Susan Helper and Rebecca Henderson

General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the U.S. market fell from 62.6% to 19.8%, and in 2009 the firm went bankrupt. In this paper we argue that the conventional... View Details

Keywords: Organizational Design; Management Practices and Processes; Insolvency and Bankruptcy; Manufacturing Industry; Auto Industry; United States

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July 2009 (Revised July 2009)
Case

Delphi Corp. and the Credit Derivatives Market (A)

By: Stuart C. Gilson, Victoria Ivashina and Sarah Abbott

In 2005, Jane Bauer-Martin, a hedge fund manager, is considering what she should do with the fund's large investment in the publicly traded bonds of Delphi Corp., a financially troubled auto parts supplier. Delphi is General Motor's key auto parts supplier, and, like... View Details

Keywords: Borrowing and Debt; Insolvency and Bankruptcy; Credit Derivatives and Swaps; Bonds; Financial Management; Risk Management

02 Jun 2011
What Do You Think?

Is it Time for a National Bankruptcy?

the situation that must be rectified." Kapil Kumar Sopory cited his concern that insolvency would further exacerbate inequality, expressing the fear that "This is going to lead to revolutions in the long run." Tom Dolembo... View Details

Keywords: by Jim Heskett

October 2008 (Revised October 2009)
Case

New Century Financial Corporation

By: Krishna G. Palepu, Suraj Srinivasan and Aldo Sesia

After years of rapid growth and stock price appreciation, New Century Financial Corporation, one of the largest subprime loan originators in the U.S., reported accounting problems in early 2007. The resulting liquidity crisis forced the company to file for Chapter 11... View Details

Keywords: Accounting Audits; Financial Reporting; Business Model; Financial Crisis; Insolvency and Bankruptcy; Mortgages; Financial Services Industry; United States

24 Jul 2013
Op-Ed

Detroit Files for Bankruptcy: HBS Faculty Weigh In

2009), Senior Program Officer, The Kresge Foundation Just what does it mean for a city to go bankrupt? Bankruptcies are so commonly associated with firms and individuals that we tend to use the same mental... View Details

Keywords: by John Macomber, Robert C. Pozen, Eric D. Werker & Benjamin Kennedy; Auto

December 2004 (Revised July 2008)
Case

Delaware Worldwide Corporation

By: Ronald W. Moore

Discusses the bankruptcy reorganization process, with an emphasis on valuation and capital structure. Serves as the basis for a bankruptcy reorganization game that has been used for many years in Creating Value Through Corporate Restructuring, a second-year finance... View Details

Keywords: Restructuring; Capital Structure; Insolvency and Bankruptcy; Financial Strategy; Valuation

February 2010 (Revised June 2014)
Supplement

CityCenter (D): Financial Crisis, Grand Opening, and a New Paradigm

By: John D. Macomber and Griffin James

"CityCenter (D)" follows the (A), (B), and (C) cases with subsequent chronological events through CityCenter's grand opening in December 2009 and financial results through March 2010. The case includes a simple valuation exercise intended to explore CEO Jim Murren's... View Details

Keywords: Insolvency and Bankruptcy; Private Equity; Games, Gaming, and Gambling; Decision Choices and Conditions; Entertainment and Recreation Industry; Nevada; New Jersey