Our paper offers the first justification for the U.S. bankruptcy code, in which firms are not allowed to commit themselves ex-ante in their lending agreements either to (Chapter 7) liquidation or to (Chapter 11) reorganization in case of distress ex-post. If fire-sale liquidation imposes negative externalities on their peers, then firms can be collectively better off if they are all forced into...

We study the optimal portfolio liquidation problem over a finite horizon in a limit order book with bid-ask spread and temporary market price impact penalizing speedy execution trades. We use a continuous-time modeling framework, but in contrast with previous related papers (see e.g. [28] and [29]), we do not assume continuous-time trading strategies. We consider instead real trading that occur...

This research paper delves into the intricacies of company liquidation, focusing on winding-up process as an essential legal mechanism to terminate a corporation's existence. The study addresses objectives understanding causes liabilities companies during and powers courts tribunals in process. scope primarily centers India's framework, encompassing Companies Act 2013 Insolvency Bankruptcy Code...