A solid and sound bankruptcy system is a crucial pillar that is needed to sustain the stability of any competitive … payments rather than to go directly into a formal bankruptcy process. This paper considers small firms and sets up two systems … obtain the solution. We discuss the optimal strategy for distressed firms choosing between bankruptcy and a debt negotiation …

Reorganization Law, firms with higher management ownership are more likely to use legal rather than private reorganization. Since the … reorganization process under the law virtually eliminates the possibility of risk-shifting investment, creditors are more likely to …

alleviated by a suitably designed bankruptcy regime that facilitates debt restructuring. …

formal reorganization procedure. The U.S. has a debtor friendly bankruptcy codes while in the U.K. and Japan, creditors have …This paper presents a comprehensive analysis of reorganization provisions available to financially distressed firms in … of the various bankruptcy laws in resolving corporate financial distress and providing opportunities for efficient and …

). The HDC can order an immediate repayment or grant a debt suspension. Exploiting the random assignment of bankruptcy … importance of regulation of credit distribution to avoid both entering into bankruptcy and re-filing for bankruptcy. …