Sizing up Corporate Restructuring in the COVID Crisis / Robin Greenwood, Benjamin Iverson, David Thesmar.

Format:

Book

Author/Creator:

Greenwood, Robin.

Contributor:

National Bureau of Economic Research.

Iverson, Benjamin.

Thesmar, David.

Series:

Working Paper Series (National Bureau of Economic Research) no. w28104.

NBER working paper series no. w28104

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2020.

Summary:

In the wake of the COVID-19 pandemic, the financial and legal system will need to deal with a surge of financial distress in the business sector. Some firms will be able to survive, while others will face bankruptcy and thus need to be liquidated or reorganized. Many surviving firms will need to be downsized or acquired. In normal times, this triage is supported by the court system, banks, and financial markets. The goal of this paper is to size up the coming surge of financial distress, list the challenges it presents in the current environment, and analyze potential policy solutions. Overall, our analysis suggests that the two key issues will be court congestion and excess liquidation and failure of small firms.

Notes:

Print version record

November 2020.