Beyond "Unprecedented" Episode 03: A New Chapter for Bankruptcy?
Download Transcript - Episode 03: A New Chapter for Bankruptcy? (331 KB)
When the pandemic shuttered businesses and triggered layoffs, an increase in bankruptcy filings seemed inevitable, and, sure enough, a number of household names, including Hertz and J. Crew, filed for Chapter 11. Is bankruptcy – a process that Professor Edward R. Morrison describes as “byzantine” – the best solution for businesses crushed by 2020’s economic woes? And, as the crisis continues, is a wave of personal bankruptcies on the horizon?
In the third episode of Beyond “Unprecedented,” host Eric Talley delves into how bankruptcy could help businesses rather than foreshadow their demise. Morrison, a bankruptcy expert, and Kate Waldock, an economist and research fellow at the Millstein Center for Global Markets and Corporate Ownership, suggest that many companies that declared bankruptcy in 2020 were already ailing and that as the COVID-19 pandemic drags on, there is still too much economic uncertainty to make bankruptcy restructuring a viable option.
Ira M. Millstein Center for Global Markets and Corporate Ownership
Talley, Eric L.; Morrison, Edward R.; and Waldock, Kate, "Beyond "Unprecedented" Episode 03: A New Chapter for Bankruptcy?" (2020). Beyond "Unprecedented". 4.