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Expert Analysis

Refining The Tools For Rehabilitating Distressed Cos.

Law360, New York ( February 4, 2015, 10:26 AM EST) -- Chapter 11 of the U.S. Bankruptcy Code strives to rehabilitate distressed companies and maximize creditors' recoveries. After its enactment in 1978, the code served those purposes well, saving companies such as Federated Department Stores, Laidlaw International, Texaco and multiple U.S. airlines. In the process of those reorganizations, secured and unsecured creditors received distributions on their claims, employees retained their jobs, and revenue streams continued for local, state and federal governments....

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