Does court-supervised reorganization work? Evidence from post-confirmation firm failure

► Unlike US Chapter 11 legislation, the Belgian reorganization legislation requires that distressed firms remain temporarily under court-supervision during the post-confirmation stage. ► We analyze the likelihood of failure and the time to failure during this period. ► Less viable firms are more likely to fail and do faster so, indicating relatively effective reorganization proceedings. ► Firms that are indebted to highly secured banks or owe high sums of unpaid taxes are more likely to fail. ► Judicial discretion affects the likelihood of failure in a subsample of sole proprietorships.