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Bankruptcy restructuring procedures are used in most legal systems to decide the fate of businesses facing financial hardship. We study how bargaining failures in such procedures impact the economic performance of participating firms in the context of Croatia, which introduced a "pre-bankruptcy settlement" (PBS) process in the wake of the Great Recession of 2007 - 2009. Local institutions left over from the communist era provide annual financial statements for both sides of more than 180,000 debtor-creditor pairs, enabling us to address selection into failed negotiations by matching a rich set of creditor and debtor characteristics. Failures to settle at the PBS stage due to idiosyncratic bargaining problems, which effectively delays entry into the standard bankruptcy procedure, leads to a lower rate of survival among debtors as well as reduced employment, revenue, and profits. We also track how bargaining failures diffuse through the network of creditors, finding a significant negative effect on small creditors, but not others. Our results highlight the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms' future prospects.

SummaryThis article reviews the Australian Family Court system. In describing the history, the author argues that the system is still incomplete: each state or territory has a different division of labour between their own and the federal courts.The Australian system has been criticised, not least from senior members of the judiciary in Australia. But the author concludes that some of the criticisms are exaggerated, and the benefits have been ignored. The fundamental problem is still the low status and priority given to children and families by lawyers.

"This book provides an in-depth analysis of 4 economically significant Asian jurisdictions: Mainland China, India, Hong Kong and Singapore. These jurisdictions have recently either reformed - or are considering reforming - their corporate restructuring laws to promote regimes conducive to restructuring financially distressed, but otherwise economically viable, companies. Mainland China, India, Hong Kong and Singapore continue to adhere to a framework that requires the court's final approval but draw references from Chapter 11 of the Bankruptcy Code 1978 in the United States and/or the schemes of arrangement in the United Kingdom. However, the institutional and market structures are very different in Asia; in particular, Asia has far higher concentration in shareholdings among listed firms, including holdings by families and the state, and different composition of creditors. The book explains how, notwithstanding the legal transplantation, corporate restructuring laws in these Asian jurisdictions have adapted and evolved due to the frictions in shareholder-creditor and the creditor-creditor relationships, and the role of the state in resolving non-performing loans and financial distress of state-owned enterprises which are listed, or which issue public debt. The study argues that any reforms must go beyond professionalising the insolvency professionals and the judiciary but must be designed to address fundamental issues of corporate governance, bank regulation and enforcing non-bankruptcy rules. It offers invaluable insights for academics and policy makers alike."--

Background: The increasing intricacies of corporate bankruptcy and financial restructuring in the global economy highlight the importance of comprehending the procedures and results for distressed organizations. The article focuses on the lack of information and action regarding the recovery of financially struggling companies, acknowledging the significance of this matter for scholars, professionals, and policymakers. Objective: This study aims to analyze the complexities of corporate bankruptcy, emphasizing the legal, financial, and operational obstacles and solutions used by corporations to manage financial difficulties. The goal is to provide a detailed examination of the methods and institutions that support business recovery and the impact on different stakeholders. Methodology: Utilising a qualitative research approach, the article conducts a thorough examination of legal texts, empirical case studies, and relevant datasets related to corporate bankruptcy and restructuring. The goal is to clarify the functions of various bankruptcy processes, including debtor-in-possession financing, and alternatives like out-of-court restructuring. Results: The results emphasize the many tactics used by corporations to reduce financial hardship, focusing on the interconnection between legal regulations, financial tools, and stakeholder involvement. The study reveals the key aspects that impact the effectiveness of restructuring initiatives, such as protecting stakeholder interests, ensuring employee well-being, and adhering strictly to legal obligations. The article provides information on the difficulties and factors that help with restructuring procedures, giving a better understanding of the practical elements involved in managing corporate bankruptcy. Conclusion: The article enhances comprehension of corporate bankruptcy and financial restructuring, emphasizing the need for a comprehensive strategy that focuses on legal compliance and stakeholder interests. This emphasizes the consequences for the continuous recovery of companies in an uncertain economic setting and proposes avenues for future study and application in the field of corporate financial revitalization. The results support the need for deliberate and well-informed decision-making to improve the resilience and recovery of struggling organizations.