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The Omnibus Budget Reconciliation Act of 1993 included depositor preference legislation intended to reduce Federal Deposit Insurance Corporation (FDIC) resolution costs. However, depositor preference might induce an offsetting reaction by general creditors and may affect resolution type.

We examine the empirical impact of state-level depositor preference laws on resolution type and costs with call-report data and FDIC data for all operating FDIC-BIF insured commercial banks that were closed or required FDIC financial assistance from January 1986 through December 1992. Our major findings are that depositor preference has: (1) tended to increase resolution costs; and (2) induced the FDIC to choose assisted mergers over liquidations.

Flying J was a family-owned company that operated travel plazas, oil refineries, a bank for trucking companies, and other related businesses. In early 2009, Crystal Call Maggelet, the majority shareholder and new CEO of Flying J, was tasked with saving the company founded by her father in 1968. In the intervening forty years Flying J had grown from four gas stations to a vertically integrated $18 billion company. Declining crude oil prices, decreased cash reserves, and multiple internal challenges forced most Flying J subsidiaries to file for bankruptcy protection. This came as a surprise to the company's lenders, suppliers, customers, and employees, who did not know the company was in trouble until it was unable to meet payroll just days before Christmas 2008.

Maggelet was determined not only to return her family's company to profitability but also to repay all of Flying J's debts, retain as many of the firm's 12,000 employees as possible, and avoid compromising employees' savings (e.g., 401K retirement accounts). All of the company's advisors told her it could not be done. They thought a more likely outcome would be paying creditors nine cents on every dollar owed. If that happened, Maggelet's family's holdings would be almost entirely wiped out according to the “priority of claims” rules in bankruptcy, and the family would end up with only 1.2 percent of a restructured Flying J.

However, to the surprise of its advisors and creditors, Flying J paid its debts in full, mostly by cutting operating costs before selling assets. The family was left with a smaller, but still very profitable company.

After students have analyzed the case they will be able to:

• Determine governance issues in family-owned businesses

• Identify the pursuit of growth as a typical cause of bankruptcy

• Understand why cash flow accounting is more important than GAAP accounting

• Grasp how huge variations can occur when calculating enterprise valuations of distressed businesses

• Understand the differences among law, governance, and ethics

Determine governance issues in family-owned businesses

Identify the pursuit of growth as a typical cause of bankruptcy

Understand why cash flow accounting is more important than GAAP accounting

Grasp how huge variations can occur when calculating enterprise valuations of distressed businesses

Understand the differences among law, governance, and ethics

The use of bibliographic citation is a crucial aspect in the creation and dissemination of information. Numerous studies have been done ranging from simple citation counts to more complex bibliographic coupling studies, and from citation classifications to citation motivation studies. This review focusses on the citation studies that have explored the complexities and the underlying norms of the citation process. The major emphasis is placed upon the studies which have dealt with citation functions, citation quality, citation concepts and citation motivation. The international perspectives of citation practice are also discussed.

The purpose of this paper is to investigate the determinants of bankruptcy protection duration of Canadian public firms, and also investigate the duration for various bankruptcy outcomes including the liquidation and re-emergence of bankrupt firms.

This study uses data on all Canadian public firms that applied for bankruptcy protection over the period 1992–2014. The authors mainly apply duration and survival analyses to draw the main conclusions.

The authors find that larger and older firms with more complicated structures and issues to settle tend to remain under protection from creditors longer, and also ascertain that the fate of relatively successful companies is determined faster. Moreover, the authors report that it takes less time to achieve a final solution for firms under bankruptcy protection when interest rates are increasing and the term spread is high. Finally, firms that file for protection under the Companies’ Creditors Arrangement Act (CCAA) spend longer restructuring than firms that file under the Bankruptcy and Insolvency Act.

The paper investigates only publicly listed firms. The data on private firms that are required to conduct the research are not available.

Various stakeholders including regulators can predict the bankruptcy protection period using the paper’s findings. Depending on the desired outcomes (reduce uncertainly, safeguard jobs or protect creditors’ rights), specific rules can be followed.

To the authors; knowledge, this is the first paper that investigates the Canadian bankruptcy protection duration. It uses the unique Canadian framework to infer the determinants of bankruptcy protection duration and bankrupt firms’ outcomes.

Authors of scientific articles often read a paper that fails to cite their prior work when they feel it should have. A survey of university faculty shows the extent to which such opinions abound. If justified, they reflect non‐use of bibliographic search methods, their inadequacy or non‐scholarly use of the result. Principles for the design of a new kind of automated or semi‐automated document retrieval system are formulated. They are analysed and shown likely to improve the scholarly quality of scientific work as represented by the bibliographies in manuscripts reporting that work.

Olympia and York (O&Y), the world′s largest privately held real estate developer, filed for bankruptcy in Canada, the US and the UK in May 1992. The study of O&Y′s impact on banks′ financial performance is important because its financial difficulties affected the banking industry significantly. Unlike studies testing how major lenders′ problems affect other US banks′ stock prices, the study is novel in that it tests how a major borrower′s problems affect both US and foreign banks′ stock prices. Analyses the reactions of US and foreign bank stocks and of O&Y′s bonds to its crisis; the capital market′s response is strongly negative. O&Y′s distress was a major event that signalled the real estate recession and investors′ concerns over the banking sector′s substantial exposure to non‐performing real estate loans. Its creditors applied increasing pressure on its management to disclose more financial information, to renegotiate loans, and eventually, to file for bankruptcy.

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.

Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.

This paper aims to clarify the relationship between perpetual succession and individual perpetual succession is the continuation of a company’s or other association’s presence in spite of the demise, liquidation, insanity, change in enrollment or a way out from the matter of any proprietor or part, or any exchange of stock.

The paper opted for a study using the related case studies. Moreover, this paper has all the necessary examples that are required for perpetual succession.

The paper provides that any adjustment in participation of a company does not affect the status of the company, death, insolvency, insanity and so forth of any member from a company does not influence the progression of the company. Thus, the life of the company does not rely on the life of its member directors. It may proceed forever, independent of continuity of its members or directors except in case of winding up or liquidation of a company.

This paper is to study how perpetual succession limits the scope of an individual.

Addresses issues and questions in an evaluative review of the insolvency of office developer Olympia and York at Canary Wharf in 1992. Asks: what made a large, private company internationally vulnerable? Why could property cycles with their risks become internationalized, notwithstanding that sometimes spreading the internationalization of property could be considered as a useful means of pooling the risks? What was the nature of the office building cycle in London which was adapting its property needs to the internationalization of the financial sector in London, Tokyo and New York? What lessons emerge in the relationships between economics, finance and law in a new wave of insolvency proceedings under post‐1980 legislation? In terms of property market conditions, how can Paul Reichmann’s consortium’s repurchase of Canary Wharf be explained?