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Creditors Fare Better In Large Bankruptcies: Study

Law360 (February 22, 2007, 12:00 AM EST) -- Creditors in large bankruptcies generally recover a lot more than creditors in small bankruptcies, a new study has found.

According to the study, which was authored by Douglas Baird of the University of Chicago Law School, Arturo Bris of IMD Business School in Switzerland and Ning Zhu of the University of California at Davis, about 50% of unsecured creditors receive nothing when a bankrupt company’s assets are less than $200,000.

In contrast, only about 10% of unsecured creditors receive nothing in the Chapter 11 cases of...
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