id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
cblr-2958	Coco, Kevin J.	Empty Manipulation: Bankruptcy Procedure Rule 2019 and Ownership Disclosure in Chapter 11 Cases	2008	47	.pdf	application/pdf	16506	683	53	This Note explores the issue of investor disclosure of bankruptcy claims and interests (ownership disclosure).12 Part II outlines the current state of bankruptcy claims trading and the potential for abuse when distressed investors hedge away their economic risk while retaining the right to vote for a debtor's reorganization plan as well as other rights in bankruptcy. Bankruptcy Procedure Rule 3001(e)(2), which allows for the relatively free trading of bankruptcy claims, leaves open a regulatory gap because it does not effectively mandate any disclosure regarding the details of an investor's claims or interests.4 The securities laws, specifically the ownership disclosure scheme that requires disclosure of large holders' interests, have not been applied to bankruptcy claims.5 In a decision that rattled the distressed investor community, the bankruptcy court in the Northwest Airlines case mandated, under Rule 2019, that an ad hoc committee of hedge funds disclose the specific prices paid for their claims and interests, as well as the dates on which they were acquired.6 Potential conflicts of interest inside bankruptcy reflect the same types of conflicts as empty voting does outside of bankruptcy.7 Distressed investors can separate voting rights from economic ownership in bankruptcy, and can use a widening array of financial instruments to accomplish idiosyncratic investment strategies.'	cache/cblr-2958.pdf	txt/cblr-2958.txt