Corporate restructuring : lessons from experience / / edited by Michael Pomerleano, William Shaw

• Record Nr.: UNINA9910968890203321
• Pubbl/distr/stampa: Washington, D.C., : World Bank, 2005
• ISBN: 1-280-15647-3; 9786610156474; 0-8213-6225-9
• Edizione: [1st ed.]
• Descrizione fisica: xlix, 382 pages : illustrations ; ; 24 cm
• Altri autori (Persone): PomerleanoMichael; ShawWilliam <1953->
• Disciplina: 658.1/6
• Soggetti: Corporate reorganizations; Consolidation and merger of corporations; Financial crises; Bankruptcy; International finance
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Presentations from a conference, "Corporate Restructuring--International Best Practices," hosted in March 2004 by the World Bank Group and held in Washington, D.C.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Intro -- Contents -- Preface -- Acknowledgments -- Contributors -- Introduction: Toward Better Practices in Systemic Corporate Restructuring -- The Government's Role -- Monitoring -- Intervention -- Legal Framework for Corporate Restructuring -- Tax Issues -- Skills and Capacity -- Financial Engineering:Financial and Operational Restructuring -- Asset Management Companies -- Alternatives to Asset Management Companies -- Use of Financial Techniques -- References -- Notes -- Chapter 1 Synopsis of Conference Papers -- Overviews of the Crisis and General Principles -- War Stories from the Crises -- Technical Issues -- Note -- Part I: Overviews of the Crisis Experience -- Chapter 2 Policy Approaches to Corporate Restructuring around the World: What Worked, What Failed? -- Overview of Approaches -- Government-Sponsored Voluntary Workout Schemes -- Court-Supervised Restructuring and Bankruptcy -- Restructuring by ; Public Asset Management Companies and State-Owned Banks -- Voluntary Workouts outside Government-Sponsored and In-Court Frameworks -- Supporting Policy Changes -- Outcomes in Corporate Restructuring -- Nonperforming Loans and Financial Indicators -- Operational Restructuring Measures -- Policy Lessons -- An Efficient Insolvency System -- Adequate Loss-Absorption Capacity -- A Proper Framework of Incentives -- A Limited Role for Banks and the State -- A Menu of Approaches -- Corporate Governance and Other Reforms -- References -- Notes -- Chapter 3 Recent International Experiences in the Use of Voluntary Workouts under Distressed Conditions -- The London Approach -- Corporate Restructuring in Korea -- Initial Government Response -- Policy Measures -- Workout Program -- Daewoo: "Too Big to Fail?" -- Special-Purpose Vehicles, Restructuring Funds, and M&amp -- A Transactions -- Strengthening the Corporate Restructuring Process within the Banks.; Corporate Restructuring in Turkey: The Istanbul Approach -- Legal Framework and Structure -- Implementation of the Istanbul Approach -- Impediments -- Corporate Restructuring in Mexico -- Poland: Decentralized Workouts Pursuant to Privatization of State-Owned Banks -- Lessons Learned -- References -- Notes -- Chapter 4 Emerging-Market and Crisis Applications for Out-of-Court Workouts: Lessons from East Asia, 1998-2001 -- Corporate-Financial Sector Linkages -- Recent Approaches to Out-of-Court Workouts -- Korea -- Malaysia -- Thailand -- Indonesia -- Results -- Easy Lessons -- Principles and Processes -- Legal and Regulatory Impediments -- Capacity Constraints -- Potential Deal Breakers -- Debtor Losses -- Creditor Losses -- Inter-Creditor Differences -- References -- Notes -- Chapter 5 Are More Restructuring Regimes Becoming Like the U.S. Chapter 11 System? -- Chapter 11 -- Restructuring Regimes in Industrial Countries -- Requirements of a Rapid-Sequencing Process in Developing Countries -- The Merits of a Chapter 11 System for Countries -- Conclusions -- Appendix 5.1: Questions and Answers on the Current Sovereign Restructuring Process -- Reference -- Notes -- Chapter 6 The Successful Asset Management Companies -- The Role and Progress of Danaharta, Malaysia, Dató Zukri Samat -- Korea Asset Management Corporation: The Host of Restructuring Vehicles Tried in Korea, Beom Choi -- China's Huarong Asset Management Company, Yang Kaisheng -- China's Banking Reform -- Asset Management Companies -- Restructuring Approaches Used in Japan, Shinjiro Takagi -- Improvements in the Legal Structure for Corporate Reorganizations -- The Industrial Revitalization Corporation of Japan -- Human Resources for Corporate Restructuring -- Conclusions -- Appendix 6.1: Civil Rehabilitation Proceeding in Japan -- Appendix 6.2: Corporate Reorganization Proceeding in Japan.; Appendix 6.3: Out-of-Court Workout in Japan -- Notes -- Chapter 7 Progress toward the Resolution of Nonperforming Loans -- The Resolution of Nonperforming Loans -- Recommendations -- References -- Note -- Part II: War Stories from the Crises -- Chapter 8 Restructuring in Weak Legal and Regulatory Jurisdictions: The Case of Indonesian Restructurings -- Successful Indonesian Restructurings -- The Impediment of a Weak Court System -- Effect of Weak Courts on the Rights of Secured Creditors -- Strong Creditor Organization and Leadership -- Cash Controls -- Unexpected Effect of Laws Passed at the Time of the Crisis -- Role of Government Interventions in Restructuring Negotiations -- Foreign Government Intervention -- Preserving the Value of the Enterprise -- Complexity of Public Debt -- Summary -- Notes -- Chapter 9 Government Policy Responses in Korea -- Note -- Chapter 10 Malaysia's Experience withCorporate ; Restructuring -- Before the Crisis -- Impact of the Crisis -- Factors Contributing to the Crisis -- The National Economic Recovery Plan -- Banking Restructuring -- Danaharta -- Danamodal -- Corporate Debt Restructuring Committee -- Corporate Restructuring -- Conclusions -- References -- Notes -- Chapter 11 An Alternative to Government Management Companies: The Mellon Approach -- Chapter 12 Corporate Restructuring Funds: The Lessons from Korea -- Background -- Corporate Restructuring Funds -- The Investment Process -- Positives and Negatives -- Part III: Technical Issues -- Chapter 13 Debt and Firm Vulnerability -- Data Description -- Regression Analysis -- Constituent Components: Sales Margins and Turnover Effects -- Country Effects -- Conclusions -- References -- Notes -- Chapter 14 The Contingent Claims Approach to Corporate Vulnerability Analysis: Estimating Default Risk and Economywide Risk Transfer -- Contingent Claims Analysis.; The Contingent Claims Methodology -- Distance to Distress and Probability of Default -- Moody's MƒRisk Model: Contingent Claims Analysis in a Multisector Framework -- Assessing Corporate Sector Vulnerabilities -- The Brazilian Corporate Sector -- The Contingent Claims Approach and Financial Market Uncertainty in Brazil in 2002 -- The Thai Corporate Sector -- The Contingent Claims Approach and the Asian Financial Crisis -- Multisector Contingent Claims Analysis -- Multisector Contingent Claims Analysis: Brazil -- Multisector Contingent Claims Approach: Thailand -- Conclusions -- Advantages of the Contingent Claims Approach -- Hurdles to Overcome -- Implications for Macroeconomic Risk Management -- References -- Notes -- Chapter 15 Developing an Effective Framework for Insolvency and Credit Rights -- The Role and Significance of Enforcement and Insolvency Systems -- Meeting the Challenges of Business in a Global Market -- Promoting Sound Investment Climates and Commercial Confidence -- The Risk Assessment Continuum -- The World Bank Principles and the Risk Assessment Continuum -- The Commercial Insolvency Framework -- Are the World Bank Principles Pro-Creditor or Pro-Debtor? -- Experience with the World Bank Principles under the ROSC Framework -- Creditor Rights Systems -- Insolvency Systems -- Rehabilitation and Reorganization of Businesses -- Institutional and Regulatory Frameworks -- Lessons and Experience in Applying the Principles -- Corporate Restructuring: Common Implementation Goals -- Corporate Rescue Approaches -- Formal Proceedings -- Comparative Tax Consequences for Debt Write-offs -- Social Protection Systems -- The Way Forward -- Appendix 15.1: World Bank Principles and Guidelines for Effective Insolvency and Creditor Rights Systems -- References -- Notes -- Appendix 1 Financial Restructuring: Techniques and Negotiating Dynamics.; Debt-for-Debt Exchange -- Situational Overview -- Situational Assessment -- The Negotiating Dynamics -- Debt-for-Equity Exchange -- The Negotiating Dynamics -- References -- Notes -- Boxes -- 2.1: Definitions of Restructuring -- 2.2: Cross-Country Experiences with Asset Management Companies -- 2.3: Special Programs and Restructuring Approaches for Small and Medium Enterprises -- 4.1: Enhanced Rules for CDRC Workouts in Malaysia, August 2001 -- 4.2: Typical Content of Workout Agreements in Korea -- 8.1: Asia Pulp and Paper -- 8.2: Role of the Mexican Government in Restructuring -- 8.3: Role of the Malaysian Government in Restructuring -- Figures -- 2.1: Financial Conditions and Performance of the Corporate Sector before the Crisis in Eight Countries -- 3.1: Korea's Approach to Debt Restructuring, Following the London Approach -- 3.2: Istanbul Approach to Debt Restructuring -- 3.3: Profit Measures for 57 Firms in ; Bank Conciliation in Poland, 1991-95 -- 13.1: Median Interest Coverage Ratio and GDP Growth Rate in Thailand, 1994-2001 -- 13.2: Histogram of Interest Coverage Ratio (ICR) for All Countries and Firms, 2000 -- 13.3: Interest Coverage Ratio (ICR) for All Brazilian Firms in the Sample, 2000 -- 14.1: Distance to Distress -- 14.2: Indicators of Corporate Sector Leverage in Brazil, 1995-2002 -- 14.3: Distance to Distress in Brazil, by Sector, March 2002 -- 14.4: Distance to Distress in Brazil, by Sector, September 2002 -- 14.5: Assets Relative to Distress Barrier in the Utility Sector in Brazil, 2002 -- 14.6: Estimated Actual Default Probability Versus Distance to Distress in the Utility Sector in Brazil, March-September 2002 -- 14.7: Implied Asset Volatility in the Utility Sector in Brazil, 2002 -- 14.8: Assets Minus Distress Barrier in Thailand, 1992 and 1996 -- 14.9: Distance to Distress in Thailand, by Sector, July 1997.; 14.10: Distance to Distress in Brazil, by Sector, October 1997.
• Sommario/riassunto: In the wake of the periodic financial crises of the late 1990s, the international financial institutions and many experts have recognized the need for a strategy to avoid and mitigate the severity of crises in the corporate sector. Addressing this problem requires the complementary efforts of policymakers, regulators, lawyers, insolvency experts, corporate restructuring specialists, and financiers. What are the roots of corporate distress? Can systemic corporate crises be predicted? What is the role of legal frameworks in preventing and coping with a crisis? What are the most effective financial techniques for dealing with distressed corporates? This timely volume takes a multidisciplinary perspective on corporate restructuring, and examines international experiences in dealing with corporate crises.