Delaware, New York Bad News For Creditors: Study

Law360, New York (January 17, 2007, 12:00 AM EST) -- Creditors of companies that file for bankruptcy protection in New York and Delaware get about 35% less recovery than their counterparts in other states, according to a new study.

The study, published Monday by Wei Wang of Queen’s University in Ontario, Canada, was the first of its kind to measure whether a creditor’s rate of recovery depends on the location.

“Courts have been competing to attract large bankruptcy cases in the past decades,” Wang wrote. “It has been shown that courts tend to please the executives...
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