Corporate Financial Distress, Restructuring, and Bankruptcy

For more than thirty-five years since Altman's 1983 pioneering work, Corporate Financial Distress, Restructuring, and Bankruptcy has been the definitive guide to the science behind what happens when businesses fail. This fully revised, expanded, and updated Fourth Edition gives experienced managers, advisors, investment professionals, and academic researchers and instructors, as well as students new to the field, state-of-the-art knowledge of restructuring practices, distressed debt and high yield bond and loan markets, credit analysis and default prediction. This new edition reflects major market developments and progress made since the global financial crisis. Joining the iconic Edward Altman, the Stern School of Business professor who created the Z-score model half a century ago, Edith Hotchkiss and new contributor Wei Wang continue to provide the in-depth coverage readers have relied on. The opening section of this volume examines the economic and legal framework of corporate bankruptcy and distressed restructurings and the leveraged finance market. Highlights of the expanded coverage of Section One include: Newly added chapters examining leveraged finance, out-of-court restructurings, and international insolvency codes An extensive stand-alone primer explaining the U.S. Chapter 11 process, providing an accessible summary of concepts important to legal, financial, and other professionals Discussion of current issues and complexities in governance of distressed firms A guide for best practices in valuation of distressed firms Section Two provides insights into the latest techniques for modeling credit risk, especially for risky debt market issuers. Highlights include: An examination of risk and return in the high yield bond market A retrospective view of the Altman Z-score family of models and their use in practice over the last 50 years Estimation of default probabilities for both U.S. and sovereign issuers Modeling and measuring recovery rates Analytics for investing in distressed securities Based on the most current research and practice, Corporate Financial Distress, Restructuring, and Bankruptcy, Fourth Edition offers a comprehensive look at the rapidly evolving restructuring industry.