Course Syllabus

JOHN CABOT UNIVERSITY

COURSE CODE: "LAW/BUS 399"
COURSE NAME: "Special Topics in Business: Financial Stress and Insolvency"
SEMESTER & YEAR: Summer Session I 2016

SYLLABUS

INSTRUCTOR: Charles Case
EMAIL: [email protected] or [email protected]
HOURS: MTWTH 9:00AM 10:45AM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: Junior Standing, EN 110
OFFICE HOURS:

COURSE DESCRIPTION:

This course introduces students to the basic economic and legal implications arising out of distressed businesses and insolvency, current global norms for resolving financial distress and the application of these concepts in the cross-border context.

SUMMARY OF COURSE CONTENT:
This course introduces students to the basic economic and legal implications arising out of distressed businesses and insolvency, current global norms for resolving financial distress and the application of these concepts in the cross-border context.

LEARNING OUTCOMES:

Creation, use and need for debt and equity financing. Causes and effects of insolvency. Current and historical policy responses to the phenomenon of insolvency with a focus on the development of international norms from the 1990’s to the present. Key principles including: the role of “enterprise value;” liquidation v. reorganization; equality of treatment; discharge and “fresh start;” collective and transparent proceedings. Cross border cases and issues with enterprise “groups.” Insolvency and resolution of financial institutions. Sovereign debt. Insolvency for individuals.

The course will include many case studies and opportunities for small group engagement and will be practically oriented

TEXTBOOK:

NONE

REQUIRED RESERVED READING:

NONE

RECOMMENDED RESERVED READING:

Book Title	Author	Publisher	ISBN number	Comments
Republic of Debtors, Bankruptcy in the Age of American Independence	Bruce Mann,	Harvard University Press 2003	ISBN 978-0674032415
Creating Value through Corporate Restructuring (2 Ed.),	Stuart C. Gilson,	Wiley Finance (2010)	ISBN 978-0-470-50532
Corporate Insolvency Law, Theory and Application	Rizwaan Jameel Mokal,	Oxford University Press	ISBN 978-0-19-926487-2	Rizwaan Jameel Mokal, Corporate Insolvency Law, Theory and Application (Oxford University Press)(ISBN 978-0-19-926487-2) (“Mokal”)

GRADING POLICY
-ASSESSMENT METHODS:

Assignment	Guidelines	Weight
Class preparation and participation		10%
Preparation of reorganization plan and work on case studies		30%
Midterm exam		20%
Comprehensive final exam		40%

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course.
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.

-ATTENDANCE REQUIREMENTS:
ATTENDANCE REQUIREMENTS AND EXAMINATION POLICY

You cannot make-up a major exam (midterm or final) without the permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence was caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity. Absences due to other meaningful conflicts, such as job interviews, family celebrations, travel difficulties, student misunderstandings or personal convenience, will not be excused. Students who will be absent from a major exam must notify the Dean’s Office prior to that exam. Absences from class due to the observance of a religious holiday will normally be excused. Individual students who will have to miss class to observe a religious holiday should notify the instructor by the end of the Add/Drop period to make prior arrangements for making up any work that will be missed. The final exam period runs until ____________

ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.

STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.

SCHEDULE

The following schedule is tentative and subject to change. Any changes will be announced in class and posted on the Moodle page.

Class	Topic / Class	Readings and Assignments (additional details on assignments follow at the end)
1	The nature and need of debt and equity financing Lecture; small group discussions; full class discussion	Materials provided by professor
2	Introduction of insolvency; societal responses; introduction to current norms Lecture; small group discussions; full class discussion	WB I—selected portions Mann—selected portions Mokal—selected portions
3	The role of insolvency law in a market economy Lecture; small group discussions; full class discussion	WB I—selected portions Mokal—selected portions UNCITRAL II—selected portions Provided Materials
4	The role of insolvency law in a market economy (continued) Lecture; small group discussions; full class discussion	WB I—selected portions Mokal—selected portions UNCITRAL II-selected portions Provided Materials
5	Economics of insolvency: enterprise value, constituents, liquidation v. reorganization Lecture; full class discussion	WB—selected portions Gilson—selected portions Provided materials
6	The basics of reorganization: valuation, time value of money, voting, confirmation standards, priorities, cram down Lecture and multiple short case studies to apply principles in small groups	Gilson—selected portions Provided materials
7	Presentation of Case study and student group work Lecture; students work in small groups to develop plan	Materials to be handed out
8	Presentation of Proposed solutions to case study and class discussion Each group presents and defends its proposed plan of reorganization	Student prepared solutions
9	Formal and Informal out of court debt restructuring Lecture; small group discussion; reports to full class	Materials to be handed out Multiple country approaches
10	MID-TERM EXAM
11	Individual and consumer insolvency systems Review of role of insolvency proceedings for individuals; different national policy responses; availability of discharge	WB II-selected portions
12	Cross-Border Insolvencies Review of existing international structures (UNCITRAL Model Law; European Union Insolvency Regulation; significant cases)	Materials provided by professor UNICTRAL I
13	Cross-Border Insolvencies and Enterprise Groups Small groups to discuss and resolve short case studies applying principles from class 12	same
14	Reorganization case studies Small group discussions followed by presentation to entire class	Selected case studies from Gilson, Part 1 (Chapters 1 through 14) Provided Materials
15	Reorganization case studies Small group discussions followed by presentation to entire class	Selected case studies from Gilson, Part 1 (Chapters 1 through 14) Provided materials
16	Reorganization case studies Small group discussions followed by presentation to entire class	Selected case studies from Gilson, Part 1 (Chapters 1 through 14) Provided materials
17	Insolvency of strategically important institutions Lecture and small group discussions	Materials provided by professor
18	Insolvency of Regulated Financial institutions Lecture and small group discussions	Materials to be provided by professor
19	Restructuring of Sovereign Debt Lecture and small group discussion	Materials to be provided by professor
20	Review	Items to review to be identified in advance
	FINAL COMPREHENSIVE EXAM