Bankruptcy Can't Save Bad Companies: Study

Law360, New York (January 7, 2009, 12:00 AM EST) -- The U.S. bankruptcy process excels at aiding companies that are basically sound but weighted down with debt, but the system can do little to revive companies with a bad business model, a forthcoming study has concluded.

The study, done by finance professors at the University of Utah and set for release this weekend, examined some 500 corporate bankruptcies over 14 years. The study looked at how the Chapter 11 process handles the various types of problems distressed companies bring with them to bankruptcy court.

Study authors...
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