Year: 2025
Type: article
Abstract: This article develops a comprehensive account of the methods of consent solicitation broadly construed. We offer four principal contributions. First, we identify the features of a solicitation that can produce coercive intercreditor dynamics. Second, we document the possibility of coercive methods under standard bond and loan contracts. Third, we show that economic considerations can justify coercion. Fourth, we conclude that the most coercive prevailing techniques cannot be so easily justified and propose an approach to construing debt contracts that would restrain what are likely the most value-destructive solicitation methods without condemning longstanding and plausibly value-enhancing techniques.
Source: The Journal of Legal Analysis
DOI: 10.1093/jla/laaf009
Authors: Vincent S J Buccola, Marcel Kahan
Institutions: University of Chicago, New York University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
Funder: Yale University
OpenAlex ID: W4414468751