Bankruptcy

The article presents an analysis of bankruptcy as an important event of the market relations during the Bulgarian National Revival period. The problems arising around bankruptcies are the main motives for the creation of modern commercial law. The many bankruptcies in Europe in the early 19 th century caused by the wars and the crises necessitated the codification of the commercial law. Then the French 'Code de commerce' appeared, promulgated in 1807. The first commercial laws of most countries in Europe and the world were created on the model of the French 'Code'. The Ottoman Commercial Law, promulgated in 1850, was also created on the basis of French 'Code de commerce'. Most of its content is aimed at bankruptcies. The article presents data on bankruptcies of Bulgarian merchants and companies in the 1850s, 1860s, and 1870s-how, when, and for what reasons they happen. Bankruptcies of some of the rich and well-known Bulgarian companies are also presented. At the end of the article the following main conclusions are made: 1/ On the Bulgarian market, as part of the Ottoman market, the bankruptcy was documented only in the third quarter of the 19 th century, i.e. after the promulgation of the Ottoman Commercial Law. 2/ Most bankruptcies are caused by the general economic situation in the region and in Europe-the crises in the 1850s, 1860s, and 1870s, uncollected debts from traders and companies, bankruptcies of partners. The reason for the bankruptcies is also the poorly kept commercial documentation of the traders and the companies. 3/ There are also intentional bankruptcies ("cunning bankruptcies" as defined by the Ottoman Commercial Law), but the data about them are incomplete and doubtful, as the real situation in most cases remains hidden from the authorities and the commercial courts. 4/ Bankruptcies directly concern the main professional and moral categories, assessed as important during the era-the honesty, locality, reputation, self-consciousness of the commercial class. A larger study is needed to show in which direction these categories are developing in the process of formation of the Bulgarian economic culture after 1878.

Nel presente saggio si analizzano le caratteristiche dell’istituto della parziale esdebitazione (discharge) a beneficio delle imprese individuali e dei consumatori persone fisiche come recentemente introdotto nel sistema spagnolo con L. n.25/2015. La prima parte dello studio focalizza l’attenzione sulle ragioni (ratio legis) della predetta speciale disciplina, chiaramente in controtendenza rispetto agli obiettivi del diritto concorsuale; quindi passa ad esaminare le conseguenze che il neonato istituto produce o e` destinato a produrre in termini di coerenza dell’intero sistema, se posto in correlazione con i fondamentali pur sempre, in Spagna, di indole eminentemente “concorsuale”.
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The aim of this paper is to analyze the characteristics of the remission system of unsettled debts (discharge) of the natural persons (entrepreneurs and consumers) in the Spanish Bankruptcy Law amended by the recent 25/2015 law. However, we consider it appropriate to dedicate the first part of our work to establish reasons and foundations that justify the existence of such a particular system, from a bankruptcy perspective, as representing the discharge, then establishing the effects and consequences that their existence produces in both bankruptcy and extra-bankruptcy terms.

After the terrorist attacks of September 11, 2001, most legacy airlines filed for bankruptcy protection as a way to cut costs drastically, with the exception of American Airlines. This article applies the Principle of Double-Effect to the act of filing for Chapter 11 bankruptcy protection for reasons of management strategy, in particular, cost-cutting. It argues that the Principle can be a useful tool for discerning the ethicality of the action, and demonstrates the usefulness by proposing three double-effect criteria that, when fulfilled, argues for the ethical justifiability the action in question.

IBC is the second most crucial reform in the legal setting of India. It is because IBC is not only making India emphatically powerful in the field of the legal environment but also provides a new identification and recognition at the global platform economically. The Insolvency and Bankruptcy Code, 2016 is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The paper studies distinguish features and the legal framework of the code. The study is descriptive in nature. In line with that, the paper also presents the impact of Insolvency and Bankruptcy code on macro environment of India.

This paper evaluates the effects of foreign ownership on the going-concern of Nigerian quoted banks. The  paper is produced based on the ex-post facto research design. Data were generated from the annual reports and financial statement of listed firms from  2011 to 2015. The population of  the study consists of all fifteen  (15) banks quoted on the Nigerian  Stock Exchange. Descriptive statistics,  Pearson correlation,  along  with fixed-effect and random-effect generalised least square (GLS)  regression techniques. Hausman Specification Test had been used as the decision rule of the analysis. The results establish that there is a significant positive relationship between the foreign ownership and going concern of listed Banks in Nigeria. It suggested that banks  should encourage foreign investment as is likely to increase ease of contact to resources,  therefore, safeguarding the supply  of resources precarious to its going concern.

The current study examines the evolution of bankruptcy reforms in India through time, as well as the effectiveness of these changes since they were first implemented in the country. There is an attempt to address the current state of cross-border bankruptcy legislation and process in India, as well as how it affects foreign creditors who invest in Indian firms. To make it more applicable to current circumstances, all of this is extended with the use of a hypothetical scenario, which also serves to demonstrate the cumulative impact of past and currently in effect legislation.

Against the background of a global economy, the current pandemic is likely to bring about a "legal pandemic" of mass insolvencies, thus threatening an economic and social collapse. The banking system remains the central pillar for the stability of a debt-structured, financialised economy, but – as shown by the financial crisis triggered in 2008 – it is also the possible epicentre of a domino-effect of insolvencies. The seminar aims at discussing the following: how did Italy and Germany tackle the emergency in the credit sector? Is the EU-legal framework on NPLs and bank capital requirements capable of preventing the risks of a legal pandemic? What is the role of the European Union and of private law?

Concordato preventivo con cessione dei beni: il liquidatore giudiziale, in oltre otto mesi, non si è mai attivato per organizzare l'asta per la vendita degli immobili facenti parte del concordato e si è, infine, dimesso. Può il debitore ottenere un risarcimento o comunque agire per far valere un inadempimento del liquidatore?

Il Master in Diritto Penale dell'Impresa (MiDPI), giunto alla sua sesta edizione, nasce su iniziativa della Facoltà di Giurisprudenza dell'Università Cattolica del Sacro Cuore e dell'Alta Scuola "Federico Stella" sulla Giustizia penale (ASGP).

Il MiDPI si caratterizza per un profilo di estrema innovatività, offrendo ai partecipanti un insegnamento di alto livello scientifico e di carattere interdisciplinare, rivolto all'analisi dei problemi teorici e pratici in materia di Diritto penale dell'economia.

An analysis of various financial ratios sampled from open and closed hospitals shows that certain leverage, liquidity, capital efficiency, and resource availability ratios can predict hospital closure up to two years in advance of the closure with an accuracy of nearly 75 percent.

SOMMARIO: 1. Dal contratto misto al concordato misto.-2. Preva-lenza e combinazione come criteri di determinazione della disciplina applicabile.-3. Le criticità connesse all'utilizzo del criterio di pre-valenza quantitativa.-4. La prevalenza funzionale.-5. Il concetto di prevalenza alla luce dei principi contenuti nella Legge Delega n. 155/2017.

This Article combines an analysis of documents submitted in connection with Chapter 11 cases filed by religious organizations with the results of in-depth interviews with these organizations’ leaders and their bankruptcy attorneys to assess whether reorganization has the potential to offer an effective solution to these debtors’ financial distress. In doing, it makes three contributions. First, it identifies a subset of organizations that seemed more likely to turn to bankruptcy: small congregationalist and non-denominational churches, often with predominately African-American membership. The Article pinpoints salient questions about these churches’ access to credit and use of bankruptcy for future study. Second, it highlights practical considerations for the attorneys, judges, and parties who will be involved in future cases filed by faith-based institutions. Third, it tracks the post-bankruptcy outcomes of a portion of the religious organizations and finds that 64% remained operating either in their original building or in a new location months after the closing of their bankruptcy cases, outcomes which are important to ongoing debates about business bankruptcy policy.

Using objective measures of investor protections in 170 countries, I establish that the level of investor protection matters for cross-country differences in GDP growth: countries with stronger protections tend to grow faster than those with poor investor protections.

Law No.7101 stipulated important changes in the Turkish insolvency law. The most significant amendment stipulated by the Law is the abolition of the institution of postponement of bankruptcy and the regulation of the provisions regarding the institution of concordat. In this article, we will focus on analysing the institution of concordat.

Homeowner files an ex-parte motion to reopen his Bankruptcy case in the Federal Court, after he obtains evidence that all beneficial interest of his mortgage is owned by the Federal National Mortgage Association ( FANNIE MAE ), and not U.S. Bank Trust, N.A., since no assignment from FNMA to U.S. Bank Trust, N.A. exists. Also the alleged "servicer and owner of the note and deed of trust" called Ditech Financial assigned all beneficiary interest to Fannie Mae on June 20, 2016, and then Caliber Home Loans, Inc. claimed to act as an Attorney in Fact for Ditech in January 2017, and claimed to assign the deed of trust to U.S. Bank Trust, N.A. as a Trustee of the LSF9 Master Participation Trust when Ditech no longer owned the note and deed of trust. This confusion and violation of Tila, RESPA, and the False Claims Act ( FCA ) has been going on since 2008. Time for clarification from the Courts across the United States as to who is the real party in interest pursuant to FRCP 17.

This paper presents an alternative technique for financial distress prediction systems. The method is based on a type of neural network, which is called hybrid associative memory with translation. While many different neural network architectures have successfully been used to predict credit risk and corporate failure, the power of associative memories for financial decision-making has not been explored in any depth as yet. The performance of the hybrid associative memory with translation is compared to four traditional neural networks, a support vector machine and a logistic regression model in terms of their prediction capabilities. The experimental results over nine real-life data sets show that the associative memory here proposed constitutes an appropriate solution for bankruptcy and credit risk prediction, performing significantly better than the rest of models under class imbalance and data overlapping conditions in terms of the true positive rate and the geometric mean of true positive and true negative rates.

This brief paper provides an example of the use of Altman's Z-Score in evaluating the probability of municipal default. It includes a short discussion of hedge fund strategy with regard to municipal default and advances an argument that political and institutional factors should be taken into account in addition to quantitative metrics when evaluating the investment risk of municipal debt.

90 years ago – in October 1929 - the crash on Wall Street created chaos in the financial markets. The Great Crash of 1929 led to the Great Depression the longest period of unemployment and contraction in modern history. The market crash of 1929 is considered a unique, five sigma event, occurring only once-in–a-lifetime. Seventy nine years after the Great Crash of 1929 (GC), the financial markets collapsed again in the Global Financial Crisis of 2008 (GFC) and threatened the financial stability of the world like in 1929. Explanations for the causes of a market crash can range from over-indebtedness, asset bubbles, speculation to massive leverage in the system. Crises can have different forms ranging from classic hunger crises to modern forms of demand crises, corporate crises and financial market crises. While the causes of a hunger crisis is often the result of a series of poor harvest, the causes of a financial market crisis can be complex and are not always easy to identify. In this paper I focus on the worst financial market crisis in history the GC in the USA. It was argued that funds and short sellers were the culprits of the crisis, and that they benefited from it. This paper covers the speculators in the GC by analysing their role, their strategies and their returns. I introduce an analysis of the role of speculators in their function as either liquidity providers or liquidity takers. As far as the theory of speculation is concerned I use Minsky’s Financial Instability Hypothesis. The analysis shows that in a systematic crisis there are no winners and there is no place to hide.

Financial insolvency is important for sustainable national growth. This can be resolved through liquidity management, which is very important in any organization in terms of the organization's current assets, current liabilities, shortterm borrowings, and management of shortfall or surplus cash for short-term periods, which affects the company's profitability. Liquidity management should be the company's goal of working capital management. Such idle cash can be used to invest in another company or diversifiable venture that are profitable. Accounting software or accounting information system is a resolution to financial insolvency in which it captures and records the financial effects of transactions. Accounting Information System (AIS) assists managers in four problem-solving stages, which are recognizing the problem, identifying alternatives, assessing the alternatives and taking managerial decision. The methodology employed for this study is Meta-analysis. The sample size employed was 30 literatures. The overall combined relationship had a P-value of .0000 indicating an overall significant level. Insolvency practice and its regulation is critical to economic development. This is especially true in the light of the unintended consequences of globalisation that may result in economic shock and business failures. Nigeria can benefit from reforms in financial insolvency by benchmarking the reform and practice initiatives of the more advanced countries within and outside Africa.

Με αφορμή τη σχολιαζόμενη απόφαση (ΜονΕφΑθ 6028/2020) επιχειρείται μία προσέγγιση του ζητήματος της διαδικασίας ειδικής διαχείρισης, ως ανάλογης προς την πτώχευση διαδικασίας αφερεγγυότητας, κατά την έννοια του αρ. 6 π.δ. 178/2002 ενώ διατυπώνονται και ορισμένες σκέψεις για τη λειτουργία της διάταξης του αρ. 6 π.δ. στο νέο ρυθμιστικό πλαίσιο του ν. 4738/2020.

During the last third of the 19th century large estates found themselves under significant tensions. A process which was seen for most of Europe, the fall of the prices of agrarian products and the ascension of wages propelled agrarian exploitation's profitability downwards. Agrarian historiography insisted that in this conjunction there would have been a kind of "defeat of the landlord". This would have been apparent through the liquidation of many rural estates, either willingly or by falling into a spiral of indebtedness. This communication will analyze 128 landlords of Catalonia that, between 1875 and 1905, and as a result of a court process of debt claiming, found at least 100 hectares of their estate under auction. Thus, it was a group of large landowners who underwent financial distress. Which factors caused this? Were these debtors the example of a traditional form of property incapable of being competitive in an uneasy economic environment? Or rather, where they the manifestation of transcendent changes happening in the socio-economic fabric of end-of-century Catalonia? By means of a prosopographic approach we will try to identify the sources of rent income for the Catalan Owner Class to contrast the following hypothesis: most of the rural elites were much less vulnerable to the fall of agrarian prices than to the evolution of financial markets. If this could be effectively proven, we would know that, by the start of the 20th century, the socio-economic landscape of Rural Catalonia was radically different from former times.

Affrontati i problemi interpretativi e i dubbi di legittimità costituzionale sollevati dalla disciplina sulle proposte concorrenti e sui c.d. concordati preventivi espropriativi, anche alla luce della legge delega per la riforma della crisi d’impresa l.155/2017, l’A. propone, de lege ferenda, l’inclusione dei soci nel procedimento e regole di cram down che conformino più nettamente la contrattazione concordataria a un nuovo paradigma, risultante dalla disciplina delle trattative e della conclusione del contratto (legge del contratto) invece che da quella della responsabilità patrimoniale del debitore (legge del concorso). Si argomenta in base al dibattito tedesco che, se indica i fondamentali effetti sistematici dell’inclusione dei soci nel procedimento concordatario, avverte però della necessità di riflettere sul contenuto dell’interesse dei soci oltre la dimensione meramente patrimoniale.

The proprietors of almost 100 Chinese furniture factories in Australia
went bankrupt during the late nineteenth and early twentieth
centuries.With a substantial stake in furniture production for decades
following the gold rushes of the 1850s and 1860s, Chinese furniture
factory operators were vilified and legislated against in a push for
‘White-Australian’ industrial advancement. Historians have
consistently concentrated on such campaigns when explaining
Chinese-Australian business failures of this period. Yet informed
principally by their bankruptcy court testimony, this paper contends
that Chinese furniture manufacturers went bankrupt largely because
of economic difficulties and, thus, failures are not sufficiently
explained by ‘White Australia’.

On August 25, 2021, Law decree 118/2021 came into force, introducing a new proceeding in the Italian legal system, the “Negotiated settlement for the solution of business crisis”, concerning the prevention/management of the business crisis. Many analyses have already been carried out. A crucial aspect has been neglected, the training in negotiation and mediation techniques. How should the training be set up? How to negotiate/mediate the relationship between creditors and debtors, especially banks?

The 1920s often called the "Golden 20s" because the equity markets were booming but there were a series of structural issues. Only a few years after the 1st World War the global economy was still suffering from the consequences of the brutal war. The market crash of 1929 came unexpected and shocked the world. It is considered a unique, five sigma event, occurring only once-in-a-lifetime. This paper covers the period before, during and after the Great Crash on Wall Street.

The main objective of this study is to analyze the "pieces" that support the construction of a bankruptcy policy, aiming to identify those that allow building a bankruptcy policy which will help in the recovery from the economic COVID crisis, as well as to build a winning policy in the economic competition between countries. To promote this purpose is observed the impact of bankruptcy policy on the entire economic cycle, allowing to understand that, more than intervening companies at the "end of life", bankruptcy policy impacts on the everyday life of a company, even before its establishment. Subsequently, identifying the characteristics of the ex ante, interim, and ex post efficiencies of a bankruptcy policy, it is analyzed how it can be built one aiming at its maximum efficiency. Finally, the main variables of bankruptcy policy are analyzed, aiming to understand its real implications, sometimes even dual, in the efficiency of this policy.

The article contains the comparative snapshots of national laws and courts’ decisions which deal with the effects of bankruptcy on international arbitration. These effects are severe and they may affect the arbitrability of a dispute, the conduct of arbitration, or the validity of an arbitration agreement. They stem from the conflict of the underlying policies of the two procedures: bankruptcy and arbitration. While arbitration is based on the principle of parties’ autonomy and privity, and it supposes the decentralization of the forum, bankruptcy proceedings are judicial, collective, and centralized. This conflict is usually left to be resolved at the national level, which results in the lack of uniformity of solutions at the international level, and consequently there is no predictability for the parties involved in international arbitration. The author provided an overview and a critical analysis of the determination of the law applicable to the effects of bankruptcy on arbitration and the comparative analysis of several specific effects.