Rescuing Business: The Making of Corporate Bankruptcy Law in England and the United States

By Bruce G. Carruthers; Terence C. Halliday | Go to book overview

Introduction

THE EXPANSION OF CORPORATE BANKRUPTCY

In the last twenty years corporate bankruptcy has been pushed out of the shadows of legal and corporate marginality into the spotlight of daily business news. Its financial and human repercussions are enormous. In many advanced economies, including Britain and the United States, corporate bankruptcy has variously emerged as a new strategic device for corporate managers, as a new frontier for highly expert lawyers and accountants, and as a matter of new urgency for governments and officials who want to encourage entrepreneurial risk-taking while they lower tariff barriers, but preserve jobs and protect home industries.

Bankruptcy is a defining characteristic of a market economy: it demarcates the limits of extending credit, confronting risk, entrepreneurial venture, and corporate self-determination; it engages all sectors of the economy; and it expresses fundamental conflicts at the heart of the capitalist political economy between labor and capital, owners and managers, debtors and creditors, and the state and the market.

Not only have major corporations in the United States become casualties (for example, W. T. Grant, Continental Airlines, Federated Stores, Macy's), but entire industries, such as steel, the airlines, retail clothing, high technology, communications, and savings and loans, have existed under a pall of financial failure. The number of concerns seeking shelter in Chapters 10 and 11 of the bankruptcy code rose from 1,435 in 1970 to 5,458 in 1980, then trebled to 17,465 by 1989, and reached a high of 24,029 in 1992 before falling back to 11,168 in 1995. The liabilities of failed companies skyrocketed from $1.89 trillion in 1970 to a high of $96.8 trillion in 1992 falling again in 1995 to $29.4 trillion.1

In Britain rates of insolvency have risen to historic highs, punctuated quite dramatically by company failures from Rolls Royce through the

____________________
1
These statistics were taken from three sources: the Statistical Abstracts of the United States ( 1996) compiled by the US Department of Commerce, the Judicial Business of the United States: Report of the Director ( 1995) compiled by the Administrative Office of the US Courts, and The Statistical History of the United States ( 1976) compiled by the US Bureau of the Census.

-1-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Rescuing Business: The Making of Corporate Bankruptcy Law in England and the United States
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 582

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.