Bankruptcy procedures in the post-transition economies

Blazy, Régis; Stef, Nicolae

doi:10.1007/s10657-019-09634-5

Cited by 15 publications

(7 citation statements)

References 63 publications

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“…In this respect, Claessens et al (2001), Meyer et al (2009), Chari et al (2010), Fan et al (2013), andLebedev et al (2015) bring direct evidence regarding the importance of the quality of institutions with respect to acquisitions in emerging markets. Furthermore, Blazy and Stef (2020) documented the importance of quality bankruptcy procedures, which are also covered in our dataset, for easing and organizing the capital transfers of distressed firms in several European emerging markets. There is also solid evidence showing that progress in reforms and the cultivation of the institutional environment is linked to economic processes in European emerging economies, namely with respect to firm performance, efficiency, survival, or recovery from financial distress (Roland, 2000;Meyer et al, 2009;Hanousek et al, 2015;Szarzec et al, 2019;Baumöhl et al, 2019;Iwasaki and Kočenda, 2020;Kočenda and Iwasaki, 2020;Stef, 2021).…”

Section: Institutions and Business Environmentsmentioning

confidence: 99%

Distressed Acquisitions: Evidence from European Emerging Markets

2021

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We analyze factors behind 23,213 distressed acquisitions in European emerging markets from 2007-2019. Besides the impact of financial ratios, legal form, ownership structure, firm size, and age, we emphasize the role of institutions and channels of their propagation. We show that the quality and enforcement of insolvency laws are linked with the lower probability of distressed acquisitions, followed by corruption control and progress in banking reforms. The impact of institutions is larger in lessadvanced countries as compared to economically stronger ones. The effect of institutions increased after the financial crisis but declined as the economic situation improved.

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Section: Institutions and Business Environmentsmentioning

confidence: 99%

Distressed Acquisitions: Evidence from European Emerging Markets

2021

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“…Although our econometric specification includes the quality of law enforcement and the amount of rights granted to creditors by bankruptcy and collateral laws, those variables do not capture the skills and experience of insolvency practitioners that handled the restructuring procedures. Blazy and Stef (2020) pointed out that practitioners can be subject to a learning‐by‐doing process as a result of bankruptcy reforms. Therefore, some know‐how differences can exist between practitioners across countries.…”

Section: Estimationsmentioning

confidence: 99%

“…Conversely, a reorganization procedure allows firm's survival under the provisions of a reorganization plan or agreement established between creditors and debtors. However, business restructuring in court can provide higher repayments to creditors compared to liquidation, as it was reported for the United States (Bris et al, 2006), Germany (Davydenko & Franks, 2008), France and England (Blazy et al, 2013), Poland and Romania (Blazy & Stef, 2020). Therefore, a reorganization procedure may encourage creditors not to force inefficient liquidations.…”

Section: Introductionmentioning

confidence: 99%

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Bankruptcy voting process and corporate reorganization

Stef

2022

Bulletin of Econ Res

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This study investigates the main legal determinants of corporate reorganization use. Three legal aspects of bankruptcy voting process were examined, such as the voting right of secured creditors (1), bankruptcy voting rule (2), and court's legal right to overrule creditors' decision (3). Using a sample of 20 countries, our estimations confirm that granting a voting right to secured lenders tends to be associated with more corporate reorganizations. Secured creditors' voting right may send a signal about firm's capacity to recover from financial distress. Such signal can encourage unsecured creditors to support the reorganization plan.

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“…According to studies conducted by Blazy and Stef for the post-socialist countries in Eastern Europe, an important aspect of attractiveness depends on the ability of their bankruptcy procedures to generate substantial recoveries. 18 As the purpose of the restructuring proceedings is to conclude an arrangement with creditors, the degree of recovery should be higher compared to bankruptcy proceedings.…”

Section: Introductionmentioning

confidence: 99%

The legal restructuring framework in Poland: Does it help indebted enterprises avoid bankruptcy?

Dzyuma-Zaremba¹

2021

Intl Insolvency Rev

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The purpose of the article is to present the latest research regarding the usefulness of restructuring proceedings in Poland, which enterprises threatened with insolvency or already insolvent may use to avoid bankruptcy. Changes in the legal system in Poland in 2015 were ground‐breaking, as not only the bankruptcy law was amended, but also the legal system was enriched with a new Restructuring Law (in force from 2016). The contribution of this article is threefold. First, the specifics of the four types of restructuring proceedings and the main actions to be carried out during the proceedings are discussed. Second, an analysis of the phenomenon of enterprise restructuring in Poland has been conducted on the basis of statistical data published by the Ministry of Justice. Third, the effects of 533 restructuring proceedings opened against capital companies in the period 2016–2018 have been assessed. The results achieved have allowed for the formulation of initial conclusions on the usefulness of the legal debt restructuring framework in Poland for business entities experiencing temporary financial difficulties.

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Bankruptcy procedures in the post-transition economies

Cited by 15 publications

References 63 publications

Distressed Acquisitions: Evidence from European Emerging Markets

Distressed Acquisitions: Evidence from European Emerging Markets

Bankruptcy voting process and corporate reorganization

The legal restructuring framework in Poland: Does it help indebted enterprises avoid bankruptcy?

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