We study the rationale behind the firm's choice between a workout and bankruptcy filing in financial distress. We emphasize the information and control rights issues in the choice. That is, only the manager knows whether the firm is economically viable but signaling this information is...

In the journey of post-socialist transition, many enterprises have accumulated large amount of debts and in deep financial distress. There axe many existing options that can be used to China's state owned enterprises (SOE's) axe facing a debt crisis. Over 80% of state enterprises have debt/asset...