Creditor Protection Research Articles

Juridical Analysis Of Creditor Protection Related To The Transfer Of Property In Bankruptcy Proceedings By Debtors

This study examines problems related to legal protection of creditors caused by debtors transferring their assets when applying for bankruptcy and regulations in the Bankruptcy Law so that they can become a legal umbrella for creditors to obtain their receivables. The research approach used in this study is a statutory approach (statue approach) with a type of normative juridical research. The sources of legal materials used are primary and secondary sources of legal materials. The technique of collecting legal materials used is library research. Validity uses theory triangulation and concept triangulation. The Bankruptcy Law essentially regulates in the event that debtors transfer their assets when they are filed for bankruptcy through a mechanism called Actio Pauliana. However, the Actio Pauliana mechanism contained in Article 41 of the Bankruptcy Law still has several shortcomings, including: First, Refusal due to differences in perception between judges to identify debtors' actions as fraud; Second, the judicial jurisdiction authorized to adjudicate Actio Pauliana's suit; Third, the lack of participation from parties, such as: customers, police, prosecutors, or banks due to incomprehension of the Bankruptcy Law.

Legal Protection of Creditors in Non-Collected Debtors Without Collateral in Koperasi Cahaya Abadi, Kediri District

<span lang="IN">This study aims to explain the legal protection for creditors in bad loans Debtors without collateral in the </span><em><span lang="EN-US">Koperasi </span><span lang="IN">Cahaya Abadi</span></em><span lang="IN">, Kediri Regency and settlement of bad credit debtors without collateral in the </span><em><span lang="EN-US">Koperasi </span><span lang="IN">Cahaya Abadi</span></em><span lang="IN">, Kediri Regency. The empirical juridical research method is also called research examining law as a pattern of behavior shown in the application of legal regulations. The empirical juridical approach is carried out by collecting primary data information obtained directly in the field aimed at applying the law and/or resolving bad loans related to bad loans from debtors who have no collateral. Whereas in legally protecting creditors for bad credit from unsecured debtors, it is necessary to have preventive and repressive legal protection measures / get customers / debtors. Meanwhile, reflective legal protection for debtors without collateral, the steps taken by the Cahaya Abadi Cooperative are Rescheduling, Reconditioning Restructuring, and Execution</span>

Debt Maturity and Institutions: Does Creditor Protection Matter?

This study aims to investigate the relationship between creditor protection and the debt maturity structure of corporations in the Gulf Cooperation Council (GCC) countries. The GCC countries enjoy large GDPs, growing capital markets, especially the Islamic bonds (Sukuk) market, and negligible tax environments. Nonetheless, the GCC countries’ financial systems are still dominated by banks, and their private investments are held by concentrated investors. The study utilizes firm-level financial data and country-level institutional data obtained from the World Bank Governance Indicators and Doing Business databases and applies the two-stage least square estimator to test its hypotheses. The findings indicate that stronger regulatory effectiveness is associated with long debt maturities, while better creditor protection is associated with short debt maturities. The latter finding suggests that managers and owners have incentives to utilize short-term debt in economies characterized by stronger liquidation and insolvency rules to avoid the loss of control in the case of a firm default. This finding has policy implications in terms of the importance of considering the dual influence of institutional reforms on the supply of and demand for long-term capital.

SISTEM TANGGUNG RENTENG DALAM PEMBERIAN KREDIT MODAL USAHA PNM MEKAAR

According to the study's findings, the debtor is also an individual guarantee under the shared responsibility system, and the Civil Code's articles 1278 and 1280 provide legal protection for creditors. This study aims to shed light on how to implement the millennial economic strategy in a way that benefits both transaction actors and those who carry out transactions. Normative juridical research examines the doctrines or principles of the Science of Law. The quantity of tests in this review were 6 individuals. The study's findings demonstrate that debtors are also individuals under the joint responsibility system. The group is obligated to pay the debtors for their services, but the large number of installments causes members to feel resentment. This is because group members are also expected to pay back their loans. The credit disbursement processing does not begin as a result of this default's occurrence, which has consequences for the group it belongs to. This indicates that it is extremely challenging for the concerned group as well as other groups.

Creditor protection and trade credit financing: Evidence from a quasi-natural experiment in China

Based on the listed firms in China's A-share stock market from 2012 to 2021, we investigate the relationship between the introduction of bankruptcy courts and trade credit financing. The empirical results show that firms obtain more trade credit after the introduction of bankruptcy courts in their location. This finding is robust to a series of endogeneity and robustness checks. We further find that the effect of bankruptcy courts on trade credit financing is more pronounced when the firm has a greater distance from its suppliers and higher financial distress. Overall, our findings show the positive effect of the introduction of bankruptcy courts and have important implications for policymakers in emerging markets.

An Introduction to and Evaluation of the 2019 Belgian Companies Act – Preparing for the Previous War?

Abstract 109This article discusses some aspects of the completely new Companies Act (“BCCA”) adopted in Belgium in 2019. Even though the reform touched upon all aspects of company law and all company types, its main goal was to roll back Belgian goldplating of EU company law Directives and to turn the hitherto very rigid Belgian private company into a very flexible, contractual vehicle with little mandatory law applicable to it, except for rules on creditor protection. As part of this reform, the concept of legal capital (not just minimum capital requirements) was abolished for the private company. In order to allow a Belgian company to better compete in the light vehicle competition, Belgium moved from the real seat doctrine to the incorporation theory. For public companies, the main reform was probably the introduction of loyalty shares, which (so far) did not succeed in attracting more listings to the Brussels stock market, but did allow existing controlling shareholders to cement their control with a smaller stake than before. The reform was very successful in increasing legal certainty about many issues about which no authoritative case law exists. But in a way, the reform fought the last war (the light vehicle competition) while arguably not enough attention was paid to enabling venture capital and private equity contracting and the capital structures that go with these investments.110

Direct Lending Shadow Banking Risk: Consequences of Commercial Banks Retreatment from European Middle Market

The regional bank consolidation in the 1990 and the global financial crisis 2008-2009 reshaped the global credit market broadly. This paper analyzes potential direct lending risks based on the commercial banks retreatment from the European middle market loan segment. Fundamental characteristics of the private debt market development, like the intensified competition for deals, yield compression and deterioration of creditor protections and the potential shadow banking risks are analyzed. Furthermore, the lack of market information, delayed valuations and varying investment volumes are discussed in the context of challenging monitoring. In the conclusion the paper explains the importance for the European regulators to prepare for a drawdown of the private debt market, via three lines of defense to take care of the underwriting process, monitoring loans and restructuring expertise. Finally, the paper recommends conducting research on the European private debt deal structure and underlying investments for a regulatory monitoring.

Glosa do wyroku Sądu Apelacyjnego w Gdańsku z dnia 13 maja 2021 r.

The judgement of the Court of Appeal concerns a penal regulation, which has been seldom used in the present practice so far, which prohibits a transfer of property from an enterprise that is at the edge of bankruptcy in order to protect it against seizure by creditors who have not been paid their receivables. The Court confirmed the frequent occurrence of such practices, which are recognised as business pathologies. A consequence of such practices is not only preventing future bailiff enforcement but also tolerating in economic activity of persons who avoid paying their debts. The gloss to the judgement is a part of the broadly understood protection of creditors against dishonesty of debtors.

Postponement of Debt Payment Obligations as an Effort to Save Concurrent Creditors’ Rights to Debtors Engaged in Investment

This study aims to analyze how legal protection for creditors who invest in companies engaged in investment, then the creditors experience losses due to the failure of the promised payment by the debtor within the specified time, so that the creditor files a PKPU application. This research was conducted using normative legal research methods. Based on the analysis of this problem, the PKPU process can be a solution to save the rights of concurrent creditors who have a very disadvantaged position if the debtor is declared bankrupt. Bankruptcy has the potential to be used as a shortcut for debtors to escape their obligation to pay debts. The existing regulations are also not enough to provide protection for concurrent creditors, especially for the existence of conditions of helplessness of concurrent creditors.

Social networks and bond covenants: evidence from China

ABSTRACT This paper explores the relationship between managerial social networks and bond covenants by using a sample of Chinese corporate bonds during 2016–2019. We find that firms with higher social network centrality issue corporate bonds with more covenant restrictions. This positive association is amplified in provinces with less developed financial systems and weaker legal protection of creditors. Our results are robust to several robustness tests and endogeneity considerations. Moreover, we examine the mechanisms relating social network centrality to bond covenants. The results show that social networks can reduce the information opacity and strengthen contract enforceability. We also find that the positive association between social network centrality and bond covenants is more pronounced in firms with lower prior but higher current social networks. Finally, this paper shows that the benefits of debt covenants in reducing credit spreads only exist in firms with higher social network centrality.

Sporazum o deobi zajedničke imovine i ugovor o podeli zajedničke imovine – zaštita poverilaca i(li) sloboda raspolaganja supružnika

In the area of property law, divorce has consequences not only for the spouses, children and members of the extended family, but also for some third parties – the spouse’s creditors. For the creditor, it is not the same whether one spouse will receive all the marital property, and the other spouse, who is a debtor in some relationship with the creditor, will not receive anything, which will prevent the creditor from collecting of the debtor’s spouse propriety. Creditors could seek to invalidate the agreement on the division of joint property due to the intention of the spouses to cheat the creditors in this way. Thus, Family Law does not provide any special type of creditor protection, but creditors can request potential protection based on the provisions of the Law on Obligations, which regulate the refutation of the debtor’s legal actions. The application of the institution of refutation of the debtor’s legal actions in the agreement on the division of joint property would not be possible in practice, which is also confirmed by the fact that there is still no judgment in domestic judicial practice that would refer to this issue. Acknowledgment of active legitimation to creditors can be done in the form of Paulian lawsuit, where it is required that the creditor has only a due claim, and it is not necessary for that claim to be determined by a legally binding and enforceable judgment. Another way of refutation of harmful agreements of the spouses by the creditor is to establish their nullity. Creditors who request the refutation of an agreement on the division of joint property, or contract on division of joint propriety will have the burden of proof to prove that an impermissible motive signifcantly infuenced the decision of one spouse or extra marital partner to conclude such an agreement and, if it is the other contracting party (spouse or extra marital partner) knew or should have known, the agreement will be void.

The Impact of Appraisal Remedies on the Financial Position of the Private Company

Appraisal remedies offer a withdrawal right to minority shareholders who are confronted with midstream-changes in a company. This form of minority protection is a hot topic in (European) company law especially since the introduction of appraisal remedies in the Cross Border Mobility Directive. This article deals with an underexposed risk to this form of minority protection in private companies, namely the impact of the payment of the compensation for the withdrawing shareholder on the financial position of the company. Just as any other distribution, the payment of the compensation could endanger the solvency and liquidity of the company. This is not only relevant for the company creditors but also the remaining shareholders. I will elaborate on this risk and how remedies for creditor protection can temper it. This article argues that this risk will, however, only seldomly occur as the impact on the financial position of the company will have a deterrent effect on the underlying transaction. The most plausible situations in which this risk will occur are ‘do or die’ transactions and the scenario of irrational behaviour of shareholders. For these scenarios, means of creditor protection are needed. Appraisal remedies, withdrawal of shareholders, private companies’ minority protection, creditor protection

Procedure for Establishing an Individual Limited Liability Company

In business world, many are experiencing quite a very rapid development. Many entrepreneurs choose individual limited liability company in running their business. The research method used is normative juridical which is qualitative in nature based on literature research. Data sources come from secondary data sources and tertiary data. The data was analyzed using a deductive mindset with a descriptive method and data analysis using a conceptual approach and a statute approach. Based on the results of the study, it was found that the concept of liability at PT Perorangan UMK is limited liability and protection for creditors against the risk of default by PT Perorangan UMK is through the enforcement of non-litigation and litigation legal remedies. The main conclusion is the importance of reviewing the risks that arise from the addition of Article 153J which has been amended in Article 109 of the Job Creation Law regarding the limitation of MSEs' liability which has not further regulated the protection of PT Perorangan UMK creditors.

Legal Protection of Creditors in Credit Agreements at Swastisari Kupang Credit Union

Credit Unions have an important role in improving the economy of the Indonesian people through joint efforts based on family principles, so cooperatives need to develop themselves further and be built to be strong and independent based on cooperative principles. In running its business, the suitable implements credit, a form of effort to process the capital owned from deposits and member donations, to achieve optimal results. A credit agreement is needed to avoid bad credit in the future as evidence of a contract between the creditor and the debtor. This is a reference to legal protection for the debtor. This research was conducted through the empirical juridical method using primary data sources, namely data obtained directly in the field. In terms of providing credit and collateral, there is often negligence by the debtor to the creditor. Hence, the creditor, in this case, the Swastisari Kupang Credit Cooperative, has a very interesting strategy as a reference for recovery, namely by checking loan files, surveys, credit analysis by applying the 5C principle, billing control by checking data periodically to find out the condition or condition of the borrowing member. In addition, the cooperative makes rescheduling, restructuring, and reconditioning to achieve mutual welfare based on the principle of kinship.

Are credit default swaps still a sideshow? How information flow between equity and CDS markets has changed since the financial crisis

We examine the information flow between equity and credit default swap (CDS) markets using firm-level returns data before and after the global financial crisis. Before the crisis, the information flow was unidirectional, with equity returns leading CDS returns. While equity returns continue to lead CDS returns after the crisis, we find that the speed of adjustment of the CDS market to equity markets has increased during this period. We also find evidence of a bidirectional flow of information between these markets, with equity returns responding to credit protection returns in the postcrisis period. The quicker response of CDS spreads to equity returns during the postcrisis period primarily occurs among entities with lower credit ratings. In contrast, the response of equity returns to lagged CDS returns during the postcrisis period is observed among firms across different credit rating categories; however, the magnitude of the response is higher among those with lower credit ratings.

Surat Kuasa Membebankan Hak Tanggungan (SKMHT) Batal Demi Hukum: Urgensi dan alternatif membangun konsep baru perlindungan hukum bagi kreditor

Time limitation regarding the validity of the power of attorney to impose mortgage rights or SKMHT in Article 15 paragraph 3 and 4 of the Law on Mortgage Rights is essentially a form of legal protection by the State as outlined in a statutory regulation. However the provision on the period of SKMHT imposes a relatively short, while on the other hand, the process of obtaining a land title certificate takes a long time does not provide legal protection for creditors and potentially creditors fail to obtain collateral. The imbalance ultimately does not reflect justice for creditor. The research method in this article is normative juridical, which is legal research that places law as a building system of norms. The norm system in question is regarding the principles, norms, rules of laws and regulations, court decisions, agreements and doctrines (teachings). Types of normative juridical research include legal principles, namely research on written positive laws or research on legal principles that live in society, sources of law, statutory regulations that are scientific theoretical in nature and can analyze the issues discussed. This study aims to examine the urgency of developing a new concept of legal protection for creditors due to SKMHT being null and void.
 KEYWORDS: SKMHT, Time Limit, Creditors

Trade credit, creditor protection and banking crisis

This paper analyzes the effect of banking crises on the trade credit provided to customers and whether this effect depends on the strength of a country's legal protection of creditors. The results indicate that trade credit extensions increase in times of crisis, although this increase is smaller in countries where creditors are well protected; however, no differences are observed in trade credit extensions between countries with weak and strong creditor protection in non-crisis periods.

Corporate governance from colonial Ceylon to post-civil war Sri Lanka

This paper examines the corporate governance mechanisms in Sri Lanka, a country that only a little more than a decade ago emerged from a 30-year long civil war. We focus on the evolution of Sri Lanka’s corporate governance from historical, sociocultural, and institutional perspectives. Taking Sri Lanka as a case where inclusiveness and reconciliation at the board level is important, we aim to diagnose the key corporate governance issues which we then broaden towards other South Asia developing countries and provide a research agenda. Many Sri Lankan firms suffer from typical Asian-style agency problems; conflicts of interest between (i) minority and majority shareholders, (ii) shareholders and debtholders, and (iii) shareholders and stakeholders. The most prevalent agency problem is the expropriation of minority shareholders’ rights through ownership pyramids, cross-holdings, or intermediate private firms. Although creditor protection laws limit the expropriation of debtholders’ rights, firms’ widespread use of political connections forces banks to grant cheap credit at favorable terms. Poor stakeholder management creates agency problems following window dressing of ESG disclosures, corporate opacity, and ethnicity-and gender-based discrimination in the workplace. This study shows that social norms and ethical values play a non-negligible role in the functioning of the corporate governance regulation and in corporate culture in Sri Lanka.

Legal Protection of Banks for the Cancellation of Land Certificates Due to Overlapping which are Being Breaked with Guarantee Rights

The provision of credit by banks should receive legal protection for both creditors and debtors. One of the conditions for granting credit is the existence of a guarantee that functions to provide a sense of security for creditors against returning credit funds in the event of default or default. The problem in this study is the cancellation of property rights certificates burdened with mortgage rights due to overlapping. The protection given to banks in the event of cancellation of collateral objects in this writing is carried out by collecting library materials and also interviews with empirical normative methods. Empirical normative legal research is research conducted by examining literature and laws and regulations related to problems and information obtained based on interview results. The results of this research are expected to be useful and useful for the development of legal science, especially Civil Law, as well as the fields of Banking Law, Guarantee Law, and Agrarian Law. This research is expected to be used as a source of knowledge, especially how to protect banks in the event of cancellation of collateral objects and the settlement mechanism and preventive efforts made by the Land Agency of the City of South Tangerang to prevent overlapping certificate problems

HAK KREDITOR DENGAN TAGIHAN PIUTANG TERTOLAK DALAM PROSES PENUNDAAN KEWAJIBAN PEMBAYARAN UTANG

One of the stages in delaying payment of receivables obligations (PKPU) is the verification of receivables. There may be a possibility that the claim for receivables being rejected at the verification stage may occur, but there is no legal remedy that can be taken by the creditor, either ordinary or extraordinary legal remedies. This article aims to analyze the legal protection of creditors' receivables which are rejected at the receivables verification stage by administrators in the PKPU process and the authority of the supervisory judge in terms of the creditor's bill being rejected at the receivables verification stage. This normative research uses a statutory approach. The results show that Law Number 37 of 2004 does not regulate legal remedies if receivables are rejected in the accounts receivable verification. Efforts are made when this happens, the supervisory judge has the authority to reconcile creditors and debtors in determining. Thus, the debtor does not need to wait for the emergence of a settlement homologation if the bill is rejected in the verification of receivables to submit an appeal to the Supreme Court.