Chapter 11

Analytical Essay # 114879

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Law > Business

Chapter 11

Discusses the history of Chapter 11 of the Bankruptcy Reform Act and applies it to the Enron case.

3,210 words () | 11 sources | MLA | 2009 United States

Paper Summary:

This paper first explains that Chapter 11 of the Bankruptcy Reform Act allows the petitioning corporation a chance to negotiate its debts with its creditors and to formulate a plan for reorganization that will allow it to fulfill its obligations. Next, the author relates the way that Enron used Chapter 11. In a credit nation, such as the United States, the paper concludes that it is very important to protect creditors' claims as well as debtors' rights to maintain the agreements and transactions, which make up the economy.

From the Paper:

"The findings of the Enron scandal were extremely complex, to the point that it is difficult to discern their legality. In 1992, president of Enron's trading operations Jeff Skilling managed to persuade federal regulators to permit the company to make use of "mark to market" accounting methods, a technique that is usually exclusive to trading and brokerage firms. This method allowed the company to figure the value of contracts yet to be collected into its profits, thus inflating the books."

Sample of Sources Used:

"A Brief History Of Bankruptcy Law." Vault. 2009. Vault.com, Inc.. 27 May 2009 <http://www.vault.com/articles/A-Brief-History-Of-Bankruptcy-Law-17926399.html>.
"Bankruptcy: An Overview." Legal Information Institute. 2009. Cornell University Law School. 27 May 2009
"What is the Difference Between Secured and Unsecured Debt?." superpages.com. 2009. Idearc Media LLC. . 27 May 2009
Miller, Roger LeRoy, and Gaylord A. Jentz. Business Law Today. 2nd ed. United States of America: West Publishing Company, 1991. Print.
Durden, Tyler. " Senior Chrysler Creditors Revolt DOW 10,000! Chrysler Chapter 11 Case Assigned To Judge Arthur Gonzalez." Phil's Stock World. 30 Apr 2009. Philstockworld, LLC. 27 May 2009 <http://www.philstockworld.com/2009/04/30/chrysler-chapter-11-case-assigned-to-judge-arthur-gonzalez/>.