LEADER 05408oam 22013694 450 001 9910154899503321 005 20230808205516.0 010 $a1-4755-4550-9 010 $a1-4755-4555-X 035 $a(CKB)4340000000018100 035 $a(MiAaPQ)EBC4745296 035 $a(IMF)WPIEA2016204 035 $a(EXLCZ)994340000000018100 100 $a20020129d2016 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $2rdacontent 182 $2rdamedia 183 $2rdacarrier 200 10$aBenefits and Costs of Corporate Debt Restructuring : $eAn Estimation for Korea /$fJae Chung, Lev Ratnovski 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2016. 215 $a1 online resource (23 pages) $cillustrations, tables 225 1 $aIMF Working Papers 311 $a1-4755-4541-X 330 3 $aThe paper offers a method to quantify benefits and costs of corporate debt restructuring, with an application to Korea. We suggest a "persistent ICR<1" criterion to capture firms that had ICR<1 for multiple consecutive years and thus will likely require restructuring. We assess the benefits of debt restructuring by estimating the effects of removing a firm's debt overhang on its investment and hiring decisions. We refine the assumptions on the cost of debt restructuring based on the literature, and focus not only on creditor losses, but also on the employment impact of corporate restructuring. Benchmark results for Korea suggest 5.5-7.5 percent of GDP creditor losses and a 0.4-0.9 percent of the labor force employment impact from the debt restructuring. These are compensated by a permanent 0.4-0.9 percentage points increase in future GDP growth thanks to higher corporate investment and 0.05-0.1 percent of labor force higher hiring in the subsequent years. The key qualitative result is that corporate debt restructurings "pay off" in the medium term: their economic cost is recouped over about 10 years. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2016/204 606 $aCorporate debt$zKorea (South)$xEconometric models 606 $aDebt relief$zKorea (South)$xEconometric models 606 $aExports and Imports$2imf 606 $aFinancial Risk Management$2imf 606 $aLabor$2imf 606 $aIndustries: Manufacturing$2imf 606 $aInvestment$2imf 606 $aCapital$2imf 606 $aIntangible Capital$2imf 606 $aCapacity$2imf 606 $aBusiness Fluctuations$2imf 606 $aCycles$2imf 606 $aBankruptcy$2imf 606 $aLiquidation$2imf 606 $aDebt$2imf 606 $aDebt Management$2imf 606 $aSovereign Debt$2imf 606 $aEmployment$2imf 606 $aUnemployment$2imf 606 $aWages$2imf 606 $aIntergenerational Income Distribution$2imf 606 $aAggregate Human Capital$2imf 606 $aAggregate Labor Productivity$2imf 606 $aLabor Force and Employment, Size, and Structure$2imf 606 $aInternational Lending and Debt Problems$2imf 606 $aIndustry Studies: Manufacturing: General$2imf 606 $aFinance$2imf 606 $aLabour$2imf 606 $aincome economics$2imf 606 $aInternational economics$2imf 606 $aManufacturing industries$2imf 606 $aDebt restructuring$2imf 606 $aLabor force$2imf 606 $aDebt burden$2imf 606 $aManufacturing$2imf 606 $aAsset and liability management$2imf 606 $aExternal debt$2imf 606 $aEconomic sectors$2imf 606 $aDebts, External$2imf 606 $aEconomic theory$2imf 606 $aLabor market$2imf 607 $aKorea, Republic of$2imf 615 0$aCorporate debt$xEconometric models. 615 0$aDebt relief$xEconometric models. 615 7$aExports and Imports 615 7$aFinancial Risk Management 615 7$aLabor 615 7$aIndustries: Manufacturing 615 7$aInvestment 615 7$aCapital 615 7$aIntangible Capital 615 7$aCapacity 615 7$aBusiness Fluctuations 615 7$aCycles 615 7$aBankruptcy 615 7$aLiquidation 615 7$aDebt 615 7$aDebt Management 615 7$aSovereign Debt 615 7$aEmployment 615 7$aUnemployment 615 7$aWages 615 7$aIntergenerational Income Distribution 615 7$aAggregate Human Capital 615 7$aAggregate Labor Productivity 615 7$aLabor Force and Employment, Size, and Structure 615 7$aInternational Lending and Debt Problems 615 7$aIndustry Studies: Manufacturing: General 615 7$aFinance 615 7$aLabour 615 7$aincome economics 615 7$aInternational economics 615 7$aManufacturing industries 615 7$aDebt restructuring 615 7$aLabor force 615 7$aDebt burden 615 7$aManufacturing 615 7$aAsset and liability management 615 7$aExternal debt 615 7$aEconomic sectors 615 7$aDebts, External 615 7$aEconomic theory 615 7$aLabor market 676 $a658.1526 700 $aChung$b Jae$01378330 701 $aRatnovski$b Lev$01193852 801 0$bDcWaIMF 906 $aBOOK 912 $a9910154899503321 996 $aBenefits and Costs of Corporate Debt Restructuring$93651388 997 $aUNINA