Download or read book Ex Ante Efficiency of Bankruptcy Procedures written by Francesca Cornelli and published by . This book was released on 1998 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper suggests a framework to analyze the efficiency properties of bankruptcy procedures, distinguishing between ex-ante and ex-post efficiency. Ex-post efficiency consists in maximizing the ex-post value of the insolvent firm, whereas ex-ante efficiency consists in maximizing the proceeds to creditors from the reorganization of the firm and providing incentives for the creditors to monitor the firm. We show that the definition of creditors rights over the company and the protection of the creditors' seniority, are crucial to assess the ex-ante efficiency of a bankruptcy procedure.
Download or read book Ex ante Vs Ex post Efficiency in Personal Bankruptcy Proceedings written by Eva-Maria Steiger and published by . This book was released on 2006 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Efficiency of Bankruptcy Procedures written by Francesca Cornelli and published by . This book was released on 1994 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bankruptcy Around the World written by Stijn Claessens and published by World Bank Publications. This book was released on 2002 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Economics of Bank Bankruptcy Law written by Matej Marinč and published by Springer Science & Business Media. This book was released on 2011-09-18 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book shows that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation of distressed banks. It explores in detail both the principal features of corporate bankruptcy law and the specific characteristics of banks including the importance of public confidence, negative externalities of bank failures, fragmented regulatory framework, bank opaqueness, and the related asset-substitution problem and liquidity provision. These features distinguish banks from other corporations and are largely neglected in corporate bankruptcy law. The authors, an assistant professor for money and finance and a research economist at the Dutch Central Bank, propose changes in both prudential regulation and reorganization policies that should allow regulators and banking authorities to better mitigate disruptions in the financial system and minimize the social costs of bank failures. Their recommendations are complemented by a discussion of bank failures from the 2007–2009 financial crisis.
Download or read book Bankruptcy Efficiency and Indirect Costs in Italian SMEs written by Marco Bisogno and published by . This book was released on 2015 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of the paper is to analyze the main goals of bankruptcy procedures and the different facets of their efficiency, which can be investigated according to an ex post or ex ante perspective.Unlike previous literature, which has mainly hypothesized a contrast between these two viewpoints, in this paper we assume a strong interdependence among ex ante and ex post perspectives, combining them in a wider and inclusive temporal approach.We investigate this approach by referring to indirect costs of bankruptcy, a variable that affects both perspectives, highlighting the temporal and logical continuity between ex ante and ex post viewpoints. Starting from the empirical results of a recent study on Italian SMEs, we argue that an efficient procedure should be able to find a good balance between two perspectives, on the grounds that the maximization of the outcome available for the creditors (ex post efficiency) is affected by the willingness and timing of filing for bankruptcy (ex ante efficiency): delaying this moment would generate the indirect costs analyzed in the paper, leading to a decrease in the overall value of the firm and damaging its stakeholders.
Download or read book A Note on Absolute Priority Rule Violations Credit Rationing and Efficiency written by Stanley D. Longhofer and published by . This book was released on 1995 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Economics of Bankruptcy Reform written by Philippe Aghion and published by . This book was released on 1992 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: We propose a new bankruptcy procedure. Initially, a firm's debts are cancelled, and cash and non-cash bids are solicited for the 'new" (all-equity) firm. Former claimants are given shares, or options to buy shares, in the new firm on the basis of absolute priority. Options are exercised once the bids are in. Finally, a shareholder vote is taken to select one of the bids. In essence, our procedure is a variant on the U.S. Chapter 7, in which non-cash bids are possible; this allows for reorganization. We believe our scheme is superior to Chapter 11 since it is simpler, quicker, market-based, avoids conflicts, and places appropriate discipline on management.
Download or read book Orderly and Effective Insolvency Procedures written by International Monetary Fund and published by International Monetary Fund. This book was released on 1999-08-02 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by IMF's Legal Department, this book outlines the key issues involved in designing and implementing orderly and effective insolvency procedures, which play a critical role in fostering growth and competitiveness and may also assist in the prevention and resolution of financial crises. The book draws on lessons learned from firsthand experience by some of the IMF's 182 member countries. It includes an analysis of the major policy choices that countries need to address when designing an insolvency system, a discussion of the advantages and disadvantages of these choices, and a number of specific recommendations.
Download or read book THE RESOLUTION OF BANKRUPTCY BY AUCTION ALLOCATING THE RESIDUAL RIGHT OF DESIGN WORKING PAPER 98213 written by SUGATO BHATTACHARYYA UNIVERSITY OF MICHIGAN BUSINESS SCHOOL, RAJDEEP SINGH WASHINGTON UNIVERSITY AT ST. LOUIS AND UNIVERSOTY OF MICHIGAN BUSINESS SCHOOL and published by . This book was released on 1998 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Using Options to Divide Value in Corporate Bankruptcy written by Lucian A. Bebchuk and published by . This book was released on 2009 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper revisits the proposal to use options in corporate bankruptcy that was put forward in Bebchuk (1988). According to the proposed procedure, corporate bankruptcy should be implemented through the distribution to participants of appropriately designed options. The paper starts by discussing the goals that should guide the design of bankruptcy procedures. The paper then explains how the options procedure can improve both ex post efficiency and ex ante efficiency. The paper offers a refined version of the procedure, and it also responds to questions that have been raised regarding the execution and desirability of the procedure. The paper concludes by explaining the relationship between the options approach to corporate bankruptcy and the Black-Scholes characterization of all corporate securities as options.
Download or read book Crisis What Crisis Orderly Workouts for Sovereign Debtors written by Barry J. Eichengreen and published by . This book was released on 1995 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: Collected the research papers examining whether there are lessons to be learned from the debt-restructuring experience of the 1980s and earlier periods, which could point the way towards a more orderly approach to the resolution of future sovereign debt crises and command a measure of international agreement.
Download or read book The Accessibility of the Italian Bankruptcy Procedures written by Marco Bisogno and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of efficient bankruptcy procedures is widely recognized and the acute recent economic crisis has emphasized the noteworthiness of this topic, which international literature has analyzed in several ways, focusing the attention on different variables, such as accessibility of bankruptcy procedures, their costs and duration, incentives and/or penalties for debtor and creditors related to the onset of a procedure, and so on. The aim of the paper is the analysis of the Italian bankruptcy procedures both in an ex post and in ex ante perspective. The ex post perspective is based on official statistical data annually published by the ISTAT (the Italian Office of Statistics), investigating costs and duration of bankruptcy procedures as well as average ratio of claims reimbursed to the creditors. The period investigated is 2000-2007. The ex ante perspective is based on two non-paired samples of failed and non-failed firms, investigating their financial statements of 2003-2008. More specifically, non-failed firms are firms for which a bankruptcy petition was submitted but the court did not order relief, rejecting the petition. The main expected result is that the Italian bankruptcy procedures are complex and not accessible enough.
Download or read book The Ethics of Bankruptcy written by Jukka Kilpi and published by Routledge. This book was released on 2002-01-08 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fundamental ethical problem in bankruptcy is that insolvents have promised to pay their debts but can not keep their promise. The Ethics of Bankruptcy examines the morality of bankruptcy. The author compares and contrasts the Humean doctrine of promises as useful conventions with the Kantian view of autonomous agency constituting promissory obligations; he explores ethical concerns raised by forgiveness, utilitarianism and distributive justice and the moral aspects of insolvents' contractual, fiduciary, tortious and criminal liability. Finally, the author assesses recent bankruptcy law reforms. Bankruptcies severly hurt creditors and society. For the insolvents and their families the experience is painful and stigmatising, yet philosophers have paid little attention to the moral aspects of this violent social phenomenon. The Ethics of Bankruptcy is the first comprehensive study that employs the tools of ethics to examine the controversies surrounding insolvency, which makes valuable and sometimes controversial reading in a decade recovering from the Recession.
Download or read book On the Efficient Design of Corporate Bankruptcy Law written by Indrajit Mallick and published by . This book was released on 2020 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explains the nature of corporate bankruptcy law as a collective action problem. The basic principles are discussed first. The first objective of the law should be the ex post efficiency principle of maximization of asset value for the creditors in bankruptcy states. Next, the law should focus on removing the bias towards restructuring. After this step is completed, the law should remove the barriers to restructuring. Last, secured creditors like commercial banks and asset rich investment banks have to be given real incentives to refinance the bankrupt company and make it viable and efficient. Substantive law is discussed next. There should be mechanisms like early warning signals and adequate incentives for information disclosure. This paper discusses the reasons why automatic stay and absolute priority rule should almost always be upheld. While the substantive law discusses and elaborates on liquidation and reorganization, the choice between the two is determined by economic cost-benefit analysis. The recent theoretical literature suggests liquidation as a more efficient and fair option but this paper argues for reorganization in three scenarios. First, if the expected liquidation value is less than the expected value from reorganization then claimants should vote for reorganization. Second, liquidation value will be comparatively low due to imperfect capital markets and it should be noted that even though bargaining in reorganization is time consuming and costly, reorganization does generate substantial value from case to case. Third, financial innovations and risk sharing induced by reorganization increase the welfare of the stakeholders of the firm. These three arguments warrant the existence of the reorganization chapter of any corporate bankruptcy code in my view.
Download or read book General Orders and Forms in Bankruptcy written by United States. Supreme Court and published by . This book was released on 1898 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Use of Data in Assessing and Designing Insolvency Systems written by José Garrido and published by International Monetary Fund. This book was released on 2019-02-04 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: To date, the use of empirical data in insolvency law analysis has been sporadic. This paper provides a conceptual framework for the use of data to assess the effectiveness and efficiency of insolvency systems. The paper analyzes the existing sources of data on insolvency proceedings, including general insolvency statistics, judicial statistics, statistics of insolvency regulators and other sources, and advocates for the design of special data collection mechanisms and statistics to conduct detailed assessments of insolvency systems and to assist in the design of legal reforms.
