This chapter discusses the concept of the 'Texas two step' bankruptcy strategy, using the case of DBMP as an example. It explores how companies can split into separate entities to retain profitable operations while transferring liabilities. The chapter also delves into the legal implications and challenges surrounding this strategy.
On this week’s podcast the Americas Core Credit team discusses Texas two-step bankruptcies and how the liability management maneuver could be deployed in Johnson & Johnson and Imerys Talc.
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