Share this page!

Enter URL or ID to Unroll

You can paste full URL like: https://x.com/threadreaderapp/status/1644127596119195649
or just the ID like: 1644127596119195649

How to get URL link on X (Twitter) App

  1. On the Twitter thread, click on or icon on the bottom
  2. Click again on or Share Via icon
  3. Click on Copy Link to Tweet
  4. Paste it above and click "Unroll Thread"!
  5. More info at Twitter Help
Jared Ellias Profile picture
Jared Ellias
@jared_ellias
Professor of Law at Harvard Law School. Research focuses on corporate bankruptcy and corporate governance.
Jul 8 • 20 tweets • 10 min read
Elisabeth de Fontenay and I have a 🚨new paper🚨 on private credit:

"The Credit Markets Go Dark," forthcoming @YaleLJournal.

In the Article, we consider what private credit will mean for corporate finance, corporate governance and the administration of bankruptcy law.
1/ Image The article is here:

(2/ papers.ssrn.com/sol3/papers.cf…
Image
Apr 2, 2021 • 16 tweets • 9 min read
A new Examiner's report explains why Cred, an $80 million crypto-firm, filed for bankruptcy.

It's a fascinating tale of bad financial intermediation with at least one key takeaway: "don't put an escaped fugitive in charge of capital decisions."

(1/
dropbox.com/s/aftf3sfumudt… First, some background. Cred essentially ran two businesses. One was a lending program where you could deposit your crypto assets at Credit and borrow against them.

They called this "CredBorrow."

(2/
Dec 21, 2020 • 16 tweets • 5 min read
A quick round-up of the bankruptcy related provisions in the new Stimulus bill, which can be found here.

There's not a ton here, but there are some things worth noting.

docs.house.gov/billsthisweek/…

1/ First, the bill includes a change I advocated for (along with a committee of bankruptcy scholars): PPP loans can now be borrowed in Chapter 11. No more choosing between Chapter 11 and PPP loans!

(2/
May 27, 2020 • 20 tweets • 6 min read
Large firms commonly file for Chapter 11 and pledge, in the DIP loan contract, to implement senior creditors' preferred restructuring transaction.

@k_m_ayotte and I study this type of deal in a🚨NEW WORKING PAPER🚨: "Bankruptcy Process for Sale"

papers.ssrn.com/sol3/papers.cf…

(1/ Image Some background: Congress gave control of Chapter 11 debtors to incumbent management. But managers are now often agreeing to give up a lot of that control in exchange for DIP financing.

Neiman Marcus' recent bankruptcy filing provides a good example of how this works.

(2/
May 8, 2020 • 12 tweets • 3 min read
This pandemic is especially unfair to seasonal businesses that make their money during summers.

Yesterday's Chapter 11 of Galileo, a summer camp that was on pace to enroll 45,000 campers this summer, illustrates how hard it will be for seasonal businesses to avoid bankruptcy (1/ Prior to COVID-19, Galileo was going to enroll a record number of campers in 70 campuses in California, Illinois and Colorado. But then disaster struck in March with shelter-in-place orders that forced the camp to cancel its summer.

(2/
Oct 10, 2019 • 10 tweets • 2 min read
It's very possible PG&E is being extra-conservative with power shutdowns because a fire during the firm's bankruptcy case would be harder for them to deal with than a fire outside of bankruptcy. This thread explains why (1/ Outside of bankruptcy, companies get sued all the time. PG&E has a very problematic liability environment, as under California law it can be stuck paying for fire damages involving its equipment even if it wasn't negligent (2/