Chapter 11: Strategic advantage and social anathema? [Book Review]

Journal of Business Ethics 5 (1):51 - 61 (1986)
The United States is at a crossroad in its treatment of Chapter 11 of the Bankruptcy Code, which deals with reorganization of bankrupt organizations. It is vital that the issues surrounding the debate be properly framed. This paper attempts to do just that by reviewing the evolution of bankruptcy law, assessing the impact of Chapter 11 leniency on societal stakeholders, considering bankruptcy as a strategic option, and addressing the ethical and societal issues that arise from the use of Chapter 11 to avoid massive litigation or to abrogate labor contracts. Serious threats to the underlying fibers of the American system of enterprise are exposed and an assessment of these threats is offered.
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