This course will begin by considering the reasons why financially distressed corporations and other business entities seek to reorganize, the available non-judicial and judicial processes to reorganize, and the theoretical considerations behind reorganization. The course will then focus primarily on reorganization under chapter 11 of the Bankruptcy Code.
The course will explore chapter 11 sequentially, from the start to the finish of a chapter 11 case, with a strong emphasis on the nuts and bolts of all aspects of chapter 11. The course will examine the reasons to file chapter 11 and what goes into the decision to file chapter 11, before turning to the preparation of a chapter 11 petition, first day motions, schedules of assets and liabilities, pleadings, and other necessary documents. The course will next examine debtor in possession governance during a chapter 11 case, including how a debtor in possession finances and operates its business, what financial reporting is required, and what deadlines it must meet to comply with the Bankruptcy Code. The course will then focus on the drafting of a disclosure statement and plan of reorganization, the procedure and requirements to obtain confirmation of the plan, and the effect of confirmation of the plan.
Along the way, the course will consider the rights and obligations during a chapter 11 case of non-debtor actors, including the bankruptcy judge, the United States Trustee, secured and unsecured creditors, equipment lessors, real property landlords, and counter-parties to executory contracts. The course will also cover the various paths that a chapter 11 case may take where a debtor's plan is not confirmed, including the appointment of a chapter 11 trustee, a sale of substantially all assets, dismissal and conversion to chapter 7.