Liquidation Values and the Credibility of Financial Contract Renegotiation: Evidence from U.S. Airlines

Efraim Benmelech, Nittai K. Bergman

NBER Working Paper No. 14059
Issued in June 2008

---- Acknowledgements ----

We thank Douglas Baird, Lucian Bebchuk, Andrea Eisfeldt, Mark Garmaise, Robert Gertner, Simon Gervais, Oliver Hart, Gustavo Manso, Stewart Myers, Antoinette Schoar, Andrei Shleifer, Jeremy Stein, George Triantis, Bilge Yilmaz, and seminar participants at the 2007 American Law and Economics Association meeting, 2008 AFA meeting in New Orleans, Columbia University, Dartmouth, Harvard Law School, Harvard Economics Department, Harvard-MIT organizational economics seminar, Interdisciplinary Center of Herzliya, MIT Sloan, NBER Corporate Finance meeting, NYU-Stern, Stanford GSB, Texas Finance Festival, The Federal Reserve Bank of Philadelphia, and the University of Virginia, Edward Glaeser (the editor), and two anonymous referees for constructive and helpful comments. We also thank Robert Grundy and Phil Shewring from Airclaims Inc. Alex Bayers provided excellent research assistance. All errors are our own. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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