Abstract
This short paper highlights that a functional analysis of insolvency and restructuring proceedings reveals that all such proceedings share one common effect: debt cancellation. In order to only cancel unsustainable debt, all insolvency and restructuring procedures have developed procedural mechanisms able to identify what fraction of a debt a debtor is still able to serve. While these insights seem to be common knowledge to macro-economists, they have received little attention in the legal discussion. This short paper explains these effects and suggests four fundamental conclusions for legislators as well as the academic discussion about the principles of insolvency and restructuring procedures.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
