. The bankruptcy code is a "primitive creditor system" and financial distress leads to an arbitration between private … agreement and costly formal bankruptcy. We consider a standard debt contract between a bank and a small firm, both risk … show that costly formal bankruptcies may occur at equilibrium and the internalization of bankruptcy costs is impossible …

The aim of this paper is to provide new evidence on the value-creation process taking place in bankruptcy procedures … extent the debtor’s value can be preserved under bankruptcy by analyzing the recovery rates in France, Germany, and the … United Kingdom. We use a unique European sample of 900 corporate bankruptcy files that were manually collected in commercial …

defaults and bankruptcy. Building on a simple model for the joint determination of the repayments of interbank claims, this …

the distribution probability of the shock, evaluate a bankruptcy risk and, at the second stage, firms are engaged in a … increases the bankruptcy probability of the merging firms while a similar merger concerning unleveraged firms or between the two … categories of firms leads to a decrease in the bankruptcy probability of leveraged firms. Moreover, the minimum number of firms …

The evolutions of the bankruptcy law seek to reach many aims: economic safety, firms' creation and expansion in a … ability to protect creditors' interest of the bankruptcy law. We show that far from being only one means of selection thanks … to which the market could be cleared of its failing agents, the bankruptcy law opens a non commercial space of resolution …

bankruptcy procedure is triggered off. This arbitration depends on the legal context and, more specifically, on the national … bankruptcy code. No study has been done on the French Civil Law. Yet, this legal system has inspired other important legislations … inclination for liquidation, collaterals may increase the occurrence of bankruptcy, provided the law facilitates such liquidation …

Under the assumption that asset markets are incomplete, this paper introduces bankruptcy in an intertemporal … argues that intervention in the form of a level of bankruptcy exemption can enhance not only social welfare but also … distributive equity. The bankruptcy law is carefully specified in the model. The model generates distributional changes in …

general equilibrium model. Binding ceilings on loan rates reduce the probability of bankruptcy. Lower bankruptcy rates result … in lower bankruptcy and liquidation costs. The authors state conditions under which the resources freed by this cost …