Article review Artur Keba kebapower@gmailcom Coming Through in a Crisis:
How Chapter 11 and the Debt
Restructuring Industry Are Helping to Revive the U.S. Economy by Stuart Gilson Looking at the 2008 financial crisis , Gilson says that restructuring and Chapter 11 played a huge role in helping the country rebound. He outlines these ideas in “Coming Through in a Crisis: How Chapter 11 and the Debt Restructuring Industry Are Helping to Revive the US Economy” , published in the fall 2012 Journal of Applied Corporate Finance. During the crisis, the “amount of debt that needed to be restructured posed a seemingly insurmountable challenge,” he writes in the article. At one point, a whopping “$3.5 trillion of corporate debt was distressed or in default. [Between] 2008 and 2009, $1.8 trillion worth of public company assets entered Chapter 11 bankruptcy protection— almost 20 times more than during the prior two years.” A significant portion of the private equity industry, was “widely believed to be on the verge of extinction.” Instead, in a relatively short time, much of the corporate debt that defaulted during the financial crisis has been managed down, mass liquidations have been averted, and corporate profits, balance sheets, and values have rebounded with remarkable speed. Even Lehman Brothers, the largest and most...
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