Bankruptcy Proceedings Research Articles

ШАРҚДА БАНКРОТЛИК ЭЛЕМЕНТЛАРИНИ АКС ЭТТИРУВЧИ МАНБАЛАР ВА УЛАРНИНГ ҲУҚУҚИЙ ТАВСИФИ

This article analyzes the emergence and development of norms aimed at the legal regulation of bankruptcy in the Ancient East, studies their specifics, compares the bankruptcy processes in the East and the West. In particular, were analyzed the records given in ancient written sources, and questions about how debt relations were regulated, in which cases debt was collected, were highlighted in what order the entire tribe reacted to debt obligations in the doctrine of Zarathustra. Islamic law also reveals the procedure for fulfilling the claims of the debtor’s creditors, the withdrawal of the debtor’s identity and focusing on his property, the privileges granted to the debtor, and the content of many conditions and deductions related to bankruptcy. In addition, was studied the measure of state support for merchants and peasants in case of non-payments during the Timurid period. Based on the rules set out in historical sources, the norms of the past and present were compared with each other, respectively, proposals and conclusions were developed aimed at improving the current legislation. The legislation on bankruptcy after gaining independence is systematically analyzed, the processes of their adoption are divided into stages, are highlighted the positive and negative aspects of documents that have lost their force.

Approval of an Arrangement in the Restructuring Proceedings and the Financial Condition of Companies Listed on the Stock Exchanges in Warsaw. Is There Any Relationship?

This paper attempts to identify the financial indicators differentiating companies that are insolvent or at risk of insolvency and have successfully entered into an arrangement with their creditors from those that have not. In addition, a two-factor model for predicting the odds of an arrangement has been proposed. The research was conducted using a population of companies listed on stock exchanges in Warsaw that initiated restructuring proceedings between October 2004 and 31 December 2020. Binary logistic regression was used as the research method. The research shows that the financial health of public companies in Poland, as measured by various financial indicators, has little impact on the effectiveness of a debtor–creditor arrangement. The main measure showing discriminatory features between groups of successful and unsuccessful entities is the share of short-term liabilities in total liabilities. A statistically significant influence was also recorded for the indicator showing the share of short-term receivables in the total assets. Furthermore, a statistically significant discriminatory power for both groups was recorded for the indicator showing the ratio of inventories to sales revenue. However, in this situation the selection of this measure was due to the industry diversity of the research population. The identification of these determinants and the proposed model may help courts and supervisors to divide insolvent companies into those that should be subject to liquidation or restructuring procedures at an early stage of the proceedings. Consequently, this can significantly reduce the direct and indirect costs of implementing bankruptcy proceedings.

The Impact of the COVID-19 Pandemic on Consumer Bankruptcies

This manuscript conducts a simple, exploratory analysis to test whether the use of the consumer bankruptcy process fundamentally differed during the COVID-19 pandemic compared to previous years. Data were drawn from the Public Access to Court Electronic Records (PACER) database maintained by the U.S. Bankruptcy Court’s Eastern District of Washington for the years 2007, 2011, 2016, and 2020. Kruskal￾Wallis tests indicate that filers in 2020 had lower average real monthly incomes than in previous years. However, household incomes were not statistically different from previous years. Filers in 2020 has significantly more debt in collections compared to 2007, but no more or less debt than in 2011 or 2016. Chi-square tests report a significantly greater proportion of filings with debts owed to collections agencies in 2020 compared to previous years. Overall, the findings suggest that the pandemic did significantly alter the use, and intensity of use, of the consumer bankruptcy process.

Criminological characteristics of crimes in bankruptcy

The article is devoted to investigating the problems of the causes of crimes in bankruptcy proceedings. The purpose of the article is to identify and analyze the causes of bankruptcy crimes achieved through the establishment of: types of bankruptcy crimes, subjects of bankruptcy crimes, motives for committing bankruptcy crimes, peculiarities of crimes at different stages of bankruptcy. The theoretical basis of the study was the scientific work of scientists and practitioners in the field of criminology, criminal law and economic law. The authors have developed their own concept, which is based on the so-called bankruptcy rhombus, which defines the composition and location of each of the participants in the bankruptcy case, is ideally suited to identify the subjects and object of the bankruptcy crime, because it allows you to see the degree of interest of participants in the case bankruptcy and their hierarchy. Now let’s look at the causes of the crime each participant individually, starting from the bottom of the rhombus – from the debtor. To achieve this goal and to solve it set of tasks during the study was used a set of various methods of cognition, among which can be distinguished: dialectical, systemic analysis, formal-logical, systemic-structural.

Firm dynamics and bankruptcy processes: A new theoretical model

AbstractThis paper introduces a theoretical model that relates firm dynamics to bankruptcy processes on both univariate and multivariate bases. The distinctiveness of the study lies in the estimation of default using a framework where firm dynamics are linked to the bankruptcy process itself. The structure builds on theoretical relations among the constructs viewed from a perspective sufficiently wide to demonstrate value addition and dilution. The univariate‐based estimation results indicate that the variables determined via the model successfully differentiate distressed firms from non‐distressed and other firms, although the evidence from the multivariate analysis facilitate a 90%+ correct distressed/non‐distressed classification rate for both 1‐ and 2‐year periods. The findings provide a road map for selecting the most appropriate default prediction variables and identifying the role of each in the prediction process. The prediction accuracy of the model does not depend solely upon statistical techniques but also reflects each variable's theoretical underpinning. The model is shown to be useful for firm rating in general and credit approval decisions in particular.

How Concurrent Creditors Are Treated in Company’s Bankruptcy: A Comparison into Indonesia and Singapore

During the distribution of wealth in Indonesia’s corporation bankruptcy procedures, the wealth is often used to satisfy the debts owed by the debtor towards preferred creditors and secured creditors. The long process and enormous cost of the bankruptcy process before paying back the concurrent creditors puts a lack of emphasis towards these types of creditors’ rights since the company is dissolved and theoretically will not allow them to get any payment towards their loans given to the company. This leads to concurrent creditors earning a status of uncertainty and confusion in earning their credits. Compared to Singapore, even if the status of payment is quite similar to Indonesia, Singapore provides a better bankruptcy law system that incorporates public opinions and provides a better system for unfair preference and undervalued transactions that provides more wealth to be distributed to concurrent creditors during the distribution of wealth.

Problems of Determination and Payment of Bankruptcy Administration Costs

This article continues the research of peculiarities seen in the insolvency proceedings of legal entities and examines the problems of determination and payment of administrative costs of the bankruptcy proceedings of legal entities. The authors analyze the features of these costs in bankruptcy proceedings and how they can be identified. It also assesses the order in which administrative expenses must be paid in cases where the expenses do not exceed the estimate of administrative expenses, exceed it, or if assets of the legal person are insufficient to reimburse these costs.

Analysis of the Issue of Real Rights for Security in the Perspective of Bankruptcy Law

Objectives: China’s opening to the outside world is getting higher and higher, which effectively promotes China’s economic development. Under such economic development background, more and more different kinds of economic situations appear in the market. Methods: The continuous progress and development of society has provided good conditions for the perfection of bankruptcy law and guarantee law. In the process of dealing with collateral in bankruptcy law, the complexity of its environment leads to the interaction between bankruptcy law and guarantee law. Results: From the perspective of law enforcement, there are still some incompatibilities between China’s guarantee law and bankruptcy law to be solved. This paper discusses the real right for security from the perspective of bankruptcy law, and analyzes the issues related to the development of bankruptcy law and security law that affect the real right for security, aiming at providing assistance for the healthy and orderly development of the industry. Conclusion: In the research, we need to pay close attention to the various processes of bankruptcy procedure and the implementation methods of real right for security, so as to ensure the responsibility system of real right protection.

REASONABLE TIME AND BANKRUPTCY OF SOCIALLY-OWNED ENTERPRISES

The subject matter of this paper is the bankruptcy of socially-owned enterprises. The aim is to examine the implications of bankruptcy proceedings against socially-owned enterprises on the budget of the Republic of Serbia and its taxpayers. The starting hypothesis is that the bankruptcies of socially-owned enterprises will have a significant negative impact on the budget of RS and its taxpayers. In order to test this hypothesis, we used the technique of descriptive statistics to determine the differences between the Commercial Courts in Belgrade, Niš and Kragujevac in terms of the average duration of bankruptcy proceedings, the maximum and minimum duration of cases, and the percentage of cases pending over four or three years. In addition, we provide a hypothetical calculation of the costs of the bankruptcy proceedings of all socially-owned enterprises in the three commercial courts in case the objection for the protection of the right to a trial within a reasonable time has been affirmed. The results show that there are no significant differences between the three commercial courts in the time dimension of the bankruptcy of socially-owned enterprises, given the fact that the vast majority of cases exceed the reasonable time limits and that such lengthy proceedings will significantly burden the RS budget.

Measuring the ex-ante incentive effects of creditor control rights during bankruptcy reorganization

A large theoretical literature studies the effects of creditor control during bankruptcy proceedings on firm outcomes. Empirical work in this area mainly examines reforms to creditor control rights during liquidation. In this paper, we use administrative microdata and exploit a legal reform in Denmark to provide the first causal estimates of creditor empowerment in reorganization-the complementary bankruptcy procedure to liquidation. We find that the Danish reform led to a sharp decline in liquidations. Although few insolvent firms make use of the new reorganization procedures, we show that solvent firms improved their financial management and increased employment and investment. The findings illustrate the empirical importance of reorganization rules on the incentives of stakeholders outside of bankruptcy.

THE RISING IMPACT OF INFORMAL EMPLOYMENT IN MALAYSIA: POST COVID-19 PANDEMIC

Even before the COVID-19 pandemic, the informal employment sector has been experiencing steadily increasing popularity. Although market trends and most workers enjoy the flexibility and challenges of informal employment, such employment does have its own risks, especially now, amid the COVID-19 pandemic crisis, employee protection have been side-lined for more important considerations such as businesses and/ or employers struggling to stay afloat and not file for bankruptcy proceedings and/or being wound-up. Extenuating circumstances such as economic sustenance, employer-reduced mobility for expansion, employee movement, etc. have all contributed to the more precarious position of informal employees. Yet, there is a great advantage of informal employment in the new norm. This paper aims to address current, prominent issues relating to women and children amidst the COVID-19 pandemic. It seeks to examine their roles and status in informal employment, their contributions in mobilizing the county’s fiscal economy, and eventually its permanence in the country’s employment landscape.

Kepailitan Perseroan Perorangan dalam Undang-Undang Cipta Kerja

The times in the economic sector in fact encourage a country to try to provide regulations in accordance with global demands. One of them is done by Indonesia by using the Omnibus Law system, then regulating a new legal entity, namely an Individual Company. The application of this legal entity aims to encourage Micro and Small Businesses to be more developed, so that by turning them into legal entities, business owners will find it easier to get investment from banks and manage the company more regularly. However, in the event that the individual company bankruptcy application has not been regulated in the Cipta Kerja act or its implementing regulations, the purpose of this study is to see how the bankruptcy process of an Individual Company in Indonesia, using the normative juridical method, which looks at statue approach and conseptual approach.

ВИПЛАТА ВИНАГОРОДИ АРБІТРАЖНОМУ КЕРУЮЧОМУ У СПРАВІ ПРО БАНКРУТСТВО: ТЕОРЕТИЧНІ І ПРАКТИЧНІ ПРОБЛЕМИ

The arbitral trustee faces many problems in his work, but the most important is question about pay for his services. The purpose of the article is to study the legal regulation of remuneration to the trustee in bankruptcy, identify problems that arise in practice in the application of the relevant provisions of the Code of Ukraine on Bankruptcy Procedure and highlight on this basis the author’s vision of the remuneration of the trustee in bankruptcy. The authors argued the introduction of a provision on the appointment of an arbitral trustee to perform the powers of the administrator of property in the event of bankruptcy proceedings on the application of the initiating creditor as a permanent one, which will work after the launch of the Unified Judicial Information and Telecommunication System. This will allow to adhere to the principle of dispositiveness, as one of the principles of the Code of Ukraine on Bankruptcy Procedure, according to which the bankruptcy procedure is carried out. Based on the results of the study, the authors conclude that the arbitral trustee should be able to choose in which bankruptcy case to participate, and which to refuse, what amount of remuneration he should receive and so on. In reorganization and liquidation proceedings, only creditors (through the creditors’ committee) should elect an arbitration trustee to perform the powers of the reorganization trustee and liquidator. Creditors must pay a fee to the trustee if they are interested in settling their claims. The arbitral trustee shall exercise his / her powers for a fee, which shall consist of a principal and an additional fee. The arbitration trustee may also receive funds from creditors from the fund to advance the monetary reward. It is necessary to distinguish between the concepts of “the emergence of the right to monetary remuneration” and “payment of monetary remuneration”. The emergence of the right to monetary remuneration means that only the first condition has come — the payment deadline. However, the payment of monetary remuneration is not automatic, as only creditors can assess the effectiveness of the arbitral trustee in the procedure of disposition of property.

CEO Turnover and Bankruptcy: The Effects of CEO Turnover on Bankruptcy Reemergence

Does CEO turnover before or during bankruptcy proceedings increase a firm’s chances for bankruptcy reemergence? Whereas scholars have emphasized that CEOs are critical to improve organizational performance and effectiveness, prior turnaround studies on CEO turnover have neglected the dynamics of managerial discretion during the period prior to filing and the period under bankruptcy protection. In this study, we highlight the differences between both periods to theorize about how a CEO turnover will affect a bankrupt firm’s likelihood for bankruptcy emergence. Emphasizing the distinctiveness of the two periods, we further hypothesize that performance severity will have opposing moderating effects on the relationship between CEO turnover and firm emergence depending on the period in which the CEO turnover occurred. Based on a sample of 345 US firms that filed for bankruptcy between the years 1992 and 2019, we find empirical support for our arguments.

PEMBAYARAN UPAH BURUH PERUSAHAAN YANG PAILIT AKIBAT PANDEMI COVID-19

As a result of the Covid_19 Pandemic which resulted in the very decline of the community's economy from the top to the bottom. Workers are one of the parties when a company goes bankrupt, but often in the bankruptcy process the constitutional rights of workers are ignored. Indonesia is a state of law (rechtstaat), not based on power (machtstaat)", meaning that everything done by the State and by all its elements can be legally held accountable. Wage is an income as a reward from the entrepreneur to the worker for a job or service that has been or will be performed, declared or valued in the form of money determined according to an agreement or statutory regulation, and paid on the basis of a work agreement between the entrepreneur and the worker. , including allowances for both the workers themselves and their families. Based on the article of the 1945 Constitution, it is stated that wages must meet a decent living for humanity. Thus, the fulfillment of a decent wage for livelihood and humanity is a wage concept that is constitutionally applicable in Indonesia. 

The Petitioner’s Legal Standing In Verdict No.4/Pdt.Suspkpu/2018/Pn.Niaga Surabaya With The Case Of Loan Payment Suspension (PKPU) Based On Law No. 37 Of 2004

Law Number 37 of 2004 concerning Bankruptcy and Suspension of Loan Payment has governed the process of Bankruptcy and Suspension of Loan Payment for State-Owned Corporations in which the one who has authority to submit the petition is the Ministry of Finance as the supervisory agency of a State-owned Corporation. Issue to be raised by the writer in this research is the Legal Standing of the Petitioner in Verdict Number 4 / pdt.sus-pkpu / 2018 / PN.Niaga Surabaya which involves a State-Owned Corporation namely PT Merpati Nusantara Airlines with its Creditors. The issue is analyzed with the applicable laws and regulations, courts verdicts, journals or articles, theories, legal concepts and views of prominent legal scholars. This study aims to determine the legal standing of the petitioner for the Loan Payment Suspension and the legal consequences of this verdict by using normative juridical method. Based on the results of this study, the verdict of Loan Payment Suspension of PT Merpati Nusantara Airlines causes on the state of free from Bankruptcy and the airline can operate again. In addition, through existing Homologation, this company gets an injection of funds from a new company partner. Thus, by operating again, the company can make payment of loans to its creditors, including employees and former employees of the company..

К вопросу актуальности процедуры наблюдения в рамках дела о несостоятельности (банкротстве)

The authors analyze the problem of the low efficiency of the modern observation procedure in the framework of the insolvency (bankruptcy) case. It is noted that in most insolvency cases, observation is a procedure that inhibits the opening of bankruptcy proceedings. In conclusion, it is concluded that the reduction in the overall length of proceedings may have a positive impact on the efficiency of the judicial system and to reduce the workload of judges of arbitration courts.

Is it worth restructuring? Analysis of companies in poor financial condition in Poland

Deteriorating financial condition of a company may lead to insolvency. As a result, the company may be declared bankrupt or undergo restructuring. The first goal of the study described in the paper is to compare the financial condition of Poland-based non-financial companies undergoing restructuring and bankruptcy processes. In the empirical study, a tool for forecasting the future financial situation of a company was constructed. The second goal is the assessment of the effectiveness of restructuring processes on the basis of a comparative analysis of companies subjected to varios forms of this procedure. An attempt was made to identify the determinants of the success or failure of the restructuring process. The study was based on the information from the Coface Poland, EMIS Professional and the Court and Commercial Gazette (Pol. ‘Polski Monitor Sądowy i Gospodarczy’) databases. The empirical research was conducted on a random sample of financial data of 1740 non-financial companies (580 companies that were declared bankrupt, 580 companies undergoing a restructuring, and 580 companies in a good financial condition) in 2015–2019. The Kruskal-Wallis test, Dunn’s test, Mann-Whitney’s test and the random forest classifier were used for the purpose of the study. Companies that were declared bankrupt or underwent a restructuring process have more in common with each other than with companies efficiently operating in the market. It was possible to create a classifier which enabled forecasting whether a company will have financial problems. The results of the study demonstrated that the efficiency of the restructuring process does not depend on financial factors. Moreover, restructuring often fails to protect companies from bankruptcy and does not have a significant impact on the financial condition of restructured entities.

Zasadnicze cechy nowego modelu postępowań dotyczących niewypłacalności dłużnika będącego osobą fizyczną nieprowadzącą działalności gospodarczej

The article contains the description and the analysis of the model of proceedings introduced to Polish regulations of so called consumer bankruptcy in the amendments passed in 2019 year. In the new regulation there exist three kinds of proceedings regarding insolvency of natural persons not conducting business activity. Two of them are classified by legislator among special bankruptcy proceedings and it is important that one of these two is conducted without a declaration of bankruptcy as it aims at an arrangement. The aim of all three proceedings is equally a debt relief. Such debt relief is possible even without any satisfaction of creditors. First of all considerations contained in the article comprise the relationships among these proceedings. Separate findings were made as regards structure of both mentioned special proceedings and the issue of bodies running these proceedings according to new regulations.

Concurso de acreedores con citación a demandado residente en país extranjero

En la tramitación de causas por concurso de acreedores, cuando el demandado tiene su domicilio en otro país, previo a la calificación y mediante un auto interlocutorio los jueces de lo civil en el Ecuador declararan su inhibición por competencia territorial. Esto en razón de que el Código Orgánico General de Procesos (2015) establece en su artículo 418 que el juez del domicilio del deudor será el competente para conocer estas causas. No obstante, lo expuesto perjudica al actor del proceso concursal, considerando que previo a iniciar el juicio existe una sentencia ejecutoriada que condena al demandado el pago de sus obligaciones. Bajo este criterio, en el presente artículo se examina el procedimiento concursal que al parecer restringe la adecuada administración de justicia y la tutela efectiva garantizada en la Constitución. El objetivo de esta investigación es plantear algunas reglas que puedan ser aplicadas, a fin de que la normativa expuesta no interrumpa el debido proceso ni la legítima defensa del presunto fallido. En el texto se propone con fundamento legal y doctrinario una reforma al Código Orgánico General de Procesos. El método utilizado es la revisión sistémica, bibliográfica y documental con el soporte y criterio de diferentes de autores.