Coase-Sandor Institute for Law & Economics Research Paper Series
Publication Date
2024
Publication Title
Coase-Sandor Working Paper Series in Law and Economics
Abstract
Restructuring support agreements (RSAs), or contracts that commit bankruptcy parties to supporting a plan of reorganization that will conform to certain requirements, are now a common feature of Chapter 11. Parties utilize these agreements in nearly half of all large cases. While prior literature has debated the normative value of RSAs, we take an empirical approach to look at what provisions the parties include in these agreements and how those provisions have changed over time.
Our analysis looks at all RSAs associated with large bankruptcies through the end of 2020. We characterize the types of firms with RSAs, the parties involved, and the language contained within their key sections. A significant majority of RSAs are entered into on or before the petition date. Common provisions relate to the bargaining process during the case and often commit the parties in advance to certain elements of the restructuring plan. Provisions related to control such as debtor milestones have become more frequent in the last ten years of the sample.
Number
1008
Recommended Citation
Waldock, Katherine; Casey, Anthony; and Tung, Frederick, "Restructuring Support Agreements: An Empirical Analysis" (2024). Coase-Sandor Institute for Law & Economics Research Paper Series. 1008.
https://chicagounbound.uchicago.edu/law_and_economics/1082
