Bankruptcy voting process and corporate reorganization

Stef, Nicolae

doi:10.1111/boer.12368

Cited by 3 publications

(1 citation statement)

References 56 publications

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“…There are also issues related to honorarium or curator fees, as the current fees are based on a percentage of the debtor's assets or total amount owed, which is seen as exploitation and benefiting individuals with vested interests. Lastly, there have been multiple interpretations of the ranking of tax bills, labor wage bills, and separatist creditors' receivables, adding further complexity to the bankruptcy process (Ayotte & Ellias, 2020;Çelik et al, 2022;Stef, 2022).…”

Section: Definition Of Bankruptcymentioning

confidence: 99%

Deregulation Policy of Bankruptcy Regulation in Effort To Promote The Indonesian Ease of Doing Business

Zilal Hamzah,

Daud,

Sofilda

et al. 2023

IJARBSS

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The resolution of bankruptcy cases is an integral part of supporting ease of doing business in Indonesia. This study aims to analyze the effect of deregulation policies, especially bankruptcy regulations in Indonesia on the ease of doing business. This helps investors determine the ranking of the ease of doing business in Indonesia and if there is a conducive investment climate, which in the end is expected to boost Indonesia's economic growth. This study utilizes primary and secondary data sources. Primary data is obtained from focus group discussions (FGD), while secondary data is gathered from documentation from related institutions. Qualitative methods and NVivo analysis tools were used to analyze the data. The findings demonstrate that in practise, debt settlement issues are resolved through bankruptcy institutions. There are numerous issues, and the Bankruptcy Law is deemed to be overly simplified and excessively easy for debtors to declare bankruptcy. Provisions contained in Law no. 37 of 2004 pertaining to Bankruptcy and PKPU are no longer relevant to the development of business practices, such as those regarding the implementation of bankruptcy, the magnitude of the bankruptcy rate and rules pertaining to the instigators of the bankruptcy. According to the recommendations of this study, implementing adjustments to Law No. 37 of 2004 concerning Bankruptcy and PKPU should be a top priority and should start as soon as possible if they are to be included in a scheduled economic policy package.

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Section: Definition Of Bankruptcymentioning

confidence: 99%

Deregulation Policy of Bankruptcy Regulation in Effort To Promote The Indonesian Ease of Doing Business

Zilal Hamzah,

Daud,

Sofilda

et al. 2023

IJARBSS

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An empirical analysis of India’s insolvency code: perspectives based on ex-post economic efficiency

Kanojia,

Gupta

2024

IJLMA

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Purpose This study aims to analyse the outcomes of Indian insolvency proceedings for their ex-post economic efficiency. Ideally, insolvent yet viable companies should witness resolution, whereas insolvent-unviable companies should be liquidated. This study aims to ascertain the key forces that ensure or prevent the application of the first part of this maxim in practice. Design/methodology/approach The study uses logistic regression on a sample of 320 corporate insolvencies (out of 942 insolvencies) reported under the Insolvency and Bankruptcy Code (IBC), 2016. Two-stage least squares regression is used to check endogeneity issues. Findings The results claim high levels of rationality from the financial creditors and acceptable levels of viability from the plan proposers for precluding liquidation of insolvent yet viable companies. The findings reveal that an excess of value from resolution over that from liquidation, controls the outcomes of insolvency proceedings. Further examinations indicate that financial creditors’ focus on upfront recovery prevents them from judging the plans on other viability-related factors. Based on the findings, this study recommends that IBC must focus on the importance of both long-term recovery rates and resolution. Originality/value To the best of the authors’ knowledge, this is one of the first studies to empirically analyse Type 2 efficiency-related errors prevalent in the Indian insolvency proceedings since the enactment of its new code. The empirical explorations offered in this research can prove to be unique for policy-making.

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Factors affecting the conclusion of an arrangement in restructuring proceedings: evidence from Poland

Prusak,

Zaremba,

Galiński

2023

10.14746/rpeis

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The EU Restructuring Directive (2019/1023) requires Member States to provide a preventive restructuring framework for financially distressed entities that remain viable or are likely to readily restore economic viability. The first step to a successful restructuring is the approval of an arrangement between the debtor and creditors. The main research objective of the article is to identify factors affecting the conclusion of an arrangement in restructuring proceedings. In the process of filtering companies initiating a restructuring procedure, these factors are seen as increasing the probability of concluding an arrangement between debtor and creditors. Moreover, an additional research objective is to construct a turnaround prediction model aimed at assessing the probability of a conclusion of an arrangement in restructuring proceedings. The study covered the companies in Poland for which restructuring proceedings opened between 2016 and 2021 ended with the approval of an arrangement, and a similar number of companies that failed to restructure successfully. Binary logistic regression was applied to achieve the aims of this study. The results show that two financial variables affected companies in terms of their chances to conclude the arrangement: the current ratio and return on assets were among the statistically significant indicators and they are characterized by higher values for debtors reaching the arrangement with their creditors. A direct positive relationship was also identified between the company’s lifespan and the outcome of the proceedings. The probability of the conclusion of the arrangement was also affected by the type of industry. Models assessing the probability of completing restructuring proceedings with an arrangement can be useful for insolvency practitioners and financial analysts during viability assessments.

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Bankruptcy voting process and corporate reorganization

Cited by 3 publications

References 56 publications

Deregulation Policy of Bankruptcy Regulation in Effort To Promote The Indonesian Ease of Doing Business

Deregulation Policy of Bankruptcy Regulation in Effort To Promote The Indonesian Ease of Doing Business

An empirical analysis of India’s insolvency code: perspectives based on ex-post economic efficiency

Factors affecting the conclusion of an arrangement in restructuring proceedings: evidence from Poland

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