Respuesta :
According to the "Creditors Bargain theory," the main normative theory of bankruptcy, bankruptcy should only be utilized to address coordination issues brought on by numerous creditors.
In our article "Breaking Bankruptcy Priority: How Rent-Seeking Upends the Creditors' Bargain," which was recently published in the Virginia Law Review, Mark Roe and I raise concerns about the stability of the priority structure in bankruptcy and propose a novel concept for bankruptcy reorganization that contradicts the conventional notion of the creditors' bargain. According to the main normative theory of bankruptcy (also known as the "Creditors Bargain theory"), filing for bankruptcy should only be used to address coordination issues brought on by numerous creditors. The reallocation of value in bankruptcy has long been conceptualized by bankruptcy scholarship as a hypothetical agreement among creditors: in the event that the firm fails, creditors agree in advance that value will be reallocated in accordance with a predetermined set of statutory and contractual priorities.
learn more about main normative theory here:
https://brainly.com/question/8798272
#SPJ4
