Envisioning Bankruptcy Without Exclusivity

Law360, New York (January 9, 2009, 12:00 AM EST) -- Imagine, for a moment, what Chapter 11 would look like without a key part of the process: the exclusivity period, that span of time during which only the distressed company can file a reorganization plan.

That’s a vision U.S. billionaire financier Carl Icahn outlined recently in an op-ed in the Wall Street Journal.

Icahn said the exclusivity period should be eliminated, arguing that the rule only ends up artificially depressing the value of distressed assets on bank balance sheets, since during an exclusivity period that can...
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