Summary
The case serves to illustrate how backstop parties in Chapter 11 rights issues can take control of a firm.
Teaching objectives
1.Explain why foreign companies file for Chapter 11 in US bankruptcy courts
2.Explain the pros and cons of backstopped rights offerings over 363 sales
3.Explain how backstop parties take over firms in Chapter 11
Keywords
- Chapter 11
- DIP loans
- 363 sale
- exit financing
- rights offering
- backstop
- equal treatment
- recovery
- control
- creditors’ intraclass conflicts
- SDG9 Industry, Innovation and Infrastructure
-
Q42025
