Abstract
Reorganization thinking relies on the idea that a reorganization is equivalent to a sale of the business in a single foreclosure auction to its in-the-money creditors. This article explores this concept in detail by comparing what we would envision as a modern foreclosure sale to the history of equity receivership, which was a foreclosure sale to senior creditors. The limitations of the less flexible legal system of 200 years ago reveal that the very pressure of railroad insolvencies led to an overlooked innovation that led the way to today’s legal flexibility. Seeking the essence of reorganization law in equity receivership clarifies that the assumption of executory contracts is an essential contribution of modern reorganization law and shows that change of control is a fortuitous consequence of juridical personality.
Recommended Citation
Nicholas L. Georgakopoulos, Learning About Reorganizations From Business Foreclosures, 26 Tenn. J. Bus. L. () , DOI: https://doi.org/10.70658/4486-1457.1700https://ir.law.utk.edu/transactions/vol26/iss1/2