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We present insolvency practitioners from 88 countries with an identical case of a hotel about to default on its debt, and ask them to describe in detail how debt enforcement against this hotel will proceed in their countries. We use the data on time, cost, and the likely disposition of the...
Persistent link: https://www.econbiz.de/10012760474
have turned their attention to the topic of bankruptcy. A large amount of work has resulted, both theoretical and empirical …, some of which has been concerned with the functioning of existing bankruptcy procedures and some with bankruptcy reform …, e.g., the goals of bankruptcy and some of the characteristics of an efficient bankruptcy procedure. This paper …
Persistent link: https://www.econbiz.de/10012763296
We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and the repayment -- under the assumption that some debt...
Persistent link: https://www.econbiz.de/10013215359
We propose a new bankruptcy procedure. Initially, a firm's debts are cancelled, and cash and non-cash bids are …
Persistent link: https://www.econbiz.de/10013240544
The existing literature on firms, based on incomplete contracts and property rights, emphasizes that the ownership of assets - and thereby firm boundaries - is determined in such a way as to encourage relationship-specific investments by the appropriate parties. It is generally accepted that...
Persistent link: https://www.econbiz.de/10012765370