Corporate Financial Distress and Bankruptcy

EDWARD I. ALTMAN, PhD, MBA, is the Max L. Heine Professor of Finance at the Stern School of Business, New York University. Since 1990, he has directed the research effort in fixed income and credit markets at the NYU Salomon Center. Previously, Altman chaired the Stern School's MBA program for twelve years. He was inducted into the Fixed Income Analyst Society's Hall of Fame in 2001 and is an advisor to many financial, consulting, and governmental institutions. Dr. Altman is the Chairman of the Academic Advisory Council of the Turnaround Management Association and a member of its Board of Directors. EDITH HOTCHKISS, PhD, is Associate Professor of Finance at Boston College. Her research has been published in the Journal of Finance, the Journal of Corporate Finance, the Journal of Financial Economics, the Review of Financial Studies, and the Journal of Financial Intermediation. She has served as an advisor in several recent Chapter 11 cases and is a member of the Board of Directors of the Turnaround Management Association.

Preface. Acknowledgments. About the Authors. PART ONE: The Legal, Economic, and Investment Dimensions of Corporate Bankruptcy and Distressed Restructurings. Chapter 1: Corporate Distress: Introduction and Statistical Background. Chapter 2: Evolution of the Bankruptcy Process in the United States and International Comparisons. Chapter 3: Post-Chapter 11 Performance. Chapter 4: The Costs of Bankruptcy. Chapter 5: Distressed Firm Valuation. Chapter 6: Firm Valuation and Corporate Leveraged Restructuring. Chapter 7: The High Yield Bond Market: Risks and Returns for Investors and Analysts. Chapter 8: Investing in Distressed Securities. Chapter 9: Risk-Return Performance of Defaulted Bonds and Bank Loans. Chapter 10: Corporate Governance in Distressed Firms. PART TWO: Techniques for the Classification and Prediction of Corporate Financial Distress and Their Applications. Chapter 11: Corporate Credit Scoring-Insolvency Risk Models. Chapter 12: An Emerging Market Credit Scoring System for Corporates. Chapter 13: Application of Distress Prediction Models. Chapter 14: Distress Prediction Models: Catalysts for Constructive Change-Managing a Financial Turnaround. Chapter 15: Estimating Recovery Rates on Defaulted Debt. References. Author Index. Subject Index.