Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

European Bankruptcy Laws: Implications for Corporations Facing Financial Distress

Kevin M. J. Kaiser
Financial Management
Vol. 25, No. 3, Special Issue: European Corporate Finance (Autumn, 1996), pp. 67-85
Published by: Wiley on behalf of the Financial Management Association International
Stable URL: http://www.jstor.org/stable/3665809
Page Count: 19
  • Read Online (Free)
  • Subscribe ($19.50)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
European Bankruptcy Laws: Implications for Corporations Facing Financial Distress
Preview not available

Abstract

This study presents brief summaries and comparisons of the reorganization opportunities within the current bankruptcy codes in the US, the UK, France, and Germany. I also discuss the main implications for firms facing financial distress according to the provisions available. The focus is on the usefulness of the applicable legal framework in ameliorating the difficulties facing a distressed debtor; mainly, asymmetries of information, conflicts of interest, distorted incentives, and ability to obtain financing to remain in business. In spite of some efforts to remedy the situation, continental European nations continue to provide mixed opportunities and provisions for resolving the problems facing a viable, liquidity-constrained firm. I present some very coarse summary data which support these insights. In the conclusion, I discuss very briefly some of the different philosophies and policies behind the different codes, and how these views impact the nature of the codes and the availability of reorganization in the different countries.

Page Thumbnails

  • Thumbnail: Page 
[67]
    [67]
  • Thumbnail: Page 
68
    68
  • Thumbnail: Page 
69
    69
  • Thumbnail: Page 
70
    70
  • Thumbnail: Page 
71
    71
  • Thumbnail: Page 
72
    72
  • Thumbnail: Page 
73
    73
  • Thumbnail: Page 
74
    74
  • Thumbnail: Page 
75
    75
  • Thumbnail: Page 
76
    76
  • Thumbnail: Page 
77
    77
  • Thumbnail: Page 
78
    78
  • Thumbnail: Page 
79
    79
  • Thumbnail: Page 
80
    80
  • Thumbnail: Page 
81
    81
  • Thumbnail: Page 
82
    82
  • Thumbnail: Page 
83
    83
  • Thumbnail: Page 
84
    84
  • Thumbnail: Page 
85
    85