MacDonald + MacDonald  
Innovative commercial litigation and insolvency solutions HomeAbout the FirmClient ServicesAttorneysMediaRestructuring ToolkitContact  

< Back to Case Studies

“Business school literature concerning risk taking provides three classic ways by which businessmen manage or control risk: (a) seeking information, (b) changing the time frame; and (c) intervening with the source of the uncertainty (bargaining). We thus see that in a situation which is far from equilibrium and in which reduction of uncertainty is desired, the Chapter 11 medicine is precisely what the doctor would have ordered to reduce risk and temperature. We also see that the features of Chapter 11 which emphasize information exchange and bargaining over time makes the plan process a risk minimizing process so long as the parties cut deals rather than submit to the coercive uncertainty of the judge.”

MacDonald, MacDonald & McLeod, “Chapter 11 As a Dynamic Evolutionary Learning Process In a Market With Fuzzy Values,” 1993-1994 Norton Survey of Bankruptcy Law, Page 26.