Has Abundant Liquidity Masked Fraud?
Journal of Corporate Renewal
As I pointed out last year, restructuring professionals have not been as busy as one might expect in the aftermath of a worldwide financial crisis. There are many reasons for the dearth of Chapter 11 filings, including an abundance of liquidity, reluctance by lenders to call defaults, and a belief that Chapter 11 has become too protracted, expensive, and uncertain. There are signs that this may be changing.