On August 27, 2020, the Columbia Law School Blue Sky Blog (focused on corporate law and capital markets) published a short summary of Professor Jared A. Ellias’ and Robert J. Stark’s (Brown Rudnick LLP) latest article entitled “Delaware Corporate Law and the ‘End of History’ in Creditor Protection“.
“As we show, at least in Delaware, corporate law has now largely retreated from its decades-long adventure with protecting creditors. But this is an anomaly in American history, and judges may be tempted to change the law again to help when creditors complain of managerial overreach, as they have time and again. We do not think we have reached the “end of history” in creditor protection. In fact, as the current marketplace is replete with abuse of creditors by private equity sponsors in particular, that day may arrive sooner than we think.”
You can find the full CLS Blue Sky blog post at this link.