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Debtor-in-possession financing and the resolution of uncertainty in Chapter 11 reorganizations

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  • Dhillon, Upinder S.
  • Noe, Thomas
  • Ramirez, Gabriel G.

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  • Dhillon, Upinder S. & Noe, Thomas & Ramirez, Gabriel G., 2007. "Debtor-in-possession financing and the resolution of uncertainty in Chapter 11 reorganizations," Journal of Financial Stability, Elsevier, vol. 3(3), pages 238-260, October.
    • Handle: RePEc:eee:finsta:v:3:y:2007:i:3:p:238-260
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    References listed on IDEAS

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    1. Fayez A. Elayan & Thomas O. Meyer, 2001. "The Impact of Receiving Debtor-in-Possession Financing on the Probability of Successful Emergence and Time Spent Under Chapter 11 Bankruptcy," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(7&8), pages 905-942.
    2. James, Christopher, 1987. "Some evidence on the uniqueness of bank loans," Journal of Financial Economics, Elsevier, vol. 19(2), pages 217-235, December.
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    4. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    5. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
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    7. Jerry R. Green & Jean-Jacques Laffont, 1986. "Partially Verifiable Information and Mechanism Design," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(3), pages 447-456.
    8. Kenneth Daniels & Gabriel Ramirez, 2008. "Information, Credit Risk, Lender Specialization and Loan Pricing: Evidence from the DIP Financing Market," Journal of Financial Services Research, Springer;Western Finance Association, vol. 34(1), pages 35-59, August.
    9. Hirshleifer, David & Thakor, Anjan V, 1992. "Managerial Conservatism, Project Choice, and Debt," The Review of Financial Studies, Society for Financial Studies, vol. 5(3), pages 437-470.
    10. Chatterjee, Sris & Dhillon, Upinder S. & Ramirez, Gabriel G., 2004. "Debtor-in-possession financing," Journal of Banking & Finance, Elsevier, vol. 28(12), pages 3097-3111, December.
    11. David Hirshleifer, 1993. "Managerial Reputation and Corporate Investment Decisions," Financial Management, Financial Management Association, vol. 22(2), Summer.
    12. Paul Asquith & Robert Gertner & David Scharfstein, 1994. "Anatomy of Financial Distress: An Examination of Junk-Bond Issuers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 625-658.
    13. Douglas W. Diamond, 1984. "Financial Intermediation and Delegated Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 393-414.
    14. Giammarino, Ronald M, 1989. "The Resolution of Financial Distress," The Review of Financial Studies, Society for Financial Studies, vol. 2(1), pages 25-47.
    15. Kose John, 1993. "Managing Financial Distress and Valuing Distressed Securities: A Survey and a Research Agenda," Financial Management, Financial Management Association, vol. 22(3), Fall.
    16. Franks, Julian R. & Torous, Walter N., 1994. "A comparison of financial recontracting in distressed exchanges and chapter 11 reorganizations," Journal of Financial Economics, Elsevier, vol. 35(3), pages 349-370, June.
    17. Ram T. S. Ramakrishnan & Anjan V. Thakor, 1984. "Information Reliability and a Theory of Financial Intermediation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 415-432.
    18. Dodd, Peter, 1980. "Merger proposals, management discretion and stockholder wealth," Journal of Financial Economics, Elsevier, vol. 8(2), pages 105-137, June.
    19. Dahiya, Sandeep & John, Kose & Puri, Manju & Ramirez, Gabriel, 2003. "Debtor-in-possession financing and bankruptcy resolution: Empirical evidence," Journal of Financial Economics, Elsevier, vol. 69(1), pages 259-280, July.
    20. Mooradian, Robert M, 1994. "The Effect of Bankruptcy Protection on Investment: Chapter 11 as a Screening Device," Journal of Finance, American Finance Association, vol. 49(4), pages 1403-1430, September.
    21. Fayez A. Elayan & Thomas O. Meyer, 2001. "The Impact of Receiving Debtor‐in‐Possession Financing on the Probability of Successful Emergence and Time Spent Under Chapter 11 Bankruptcy," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(7‐8), pages 905-942, September.
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    Cited by:

    1. Iftekhar Hasan & Gabriel G. Ramírez & Gaiyan Zhang, 2019. "Lock‐In Effects in Relationship Lending: Evidence from DIP Loans," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(4), pages 1021-1043, June.
    2. Annabi, Amira & Breton, Michèle & François, Pascal, 2021. "Could Chapter 11 redeem itself? Wealth and welfare effects of the redemption option," International Review of Law and Economics, Elsevier, vol. 67(C).
    3. John, Kose & Mateti, Ravi S. & Vasudevan, Gopala, 2013. "Resolution of financial distress: A theory of the choice between Chapter 11 and workouts," Journal of Financial Stability, Elsevier, vol. 9(2), pages 196-209.
    4. Amol Baxi, 2023. "Interim Finance in Creditor-Oriented Bankruptcy Codes: A Study in the Context of Insolvency & Bankruptcy Code, India," Vikalpa: The Journal for Decision Makers, , vol. 48(3), pages 189-205, September.
    5. Beiqi Lin & Chelsea Liu & Kelvin Jui Keng Tan & Qing Zhou, 2020. "CEO turnover and bankrupt firms’ emergence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(9-10), pages 1238-1267, October.

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