Feast for Lawyers

A how-to book about corporate bankruptcy fills a niche, and Stein is an obvious person to write it. The feisty publisher of Stein & Day, which went down this year after a long struggle, reports on the mess that seems to be contemporary bankruptcy law and practice. He is bitter and unforgiving about his treatment by some creditors and lawyers, but from the experience draws lessons that are likely to be of value to CEOs facing Chapter 11. His account of the process by which he lost his company is harrowing, though Stein supplies examples of happier endings, too--cases in which firms were able to climb back to prosperity. Always, however, this seems to have been done in spite of, rather than because of, Chapter 11 provisions; and requires more forethought, planning, resources and luck than many companies can muster. Stein may exaggerate bankruptcy shenanigans out of personal pique, but if half of what he writes is true, the law is in need of reform. A fine cautionary read. (Dec.)