Restructuring Effort Research Articles

Causes for Near Default Sukuk Cases in the 21st Century and Their Rescue Mechanisms

This study aims to examine the reasons that triggered sukuk to nearly default in the 21st century and the rescue mechanisms they used under the circumstance. This research is constructed as a case study examining selected near default sukuk cases from across jurisdictions. It is found that the main issues that triggered sukuk to nearly default are the lack of development of shariah governance, the backwardness in harmonizing shariah standards, and poor risk management through the business cycle of the underlying project. It is also found that two main rescue mechanisms are used in handling the sukuk that nearly defaulted. The first way is using commodity murabaha to pay out ijarah sukuk holders, as in the case of Ingress sukuk. The second way is by altering the terms of mudharabah sukuk to accommodate the aspiration of the sukuk holders, as in the case of Dana Gas sukuk. An anomaly in this regard is observed in Nakheel's case, where no restructuring effort was conducted as the Emirate of Dubai covered some of the debts.

PT Garuda Indonesia (PERSERO) Tbk Stock (GIAA) Fair Value Valuation Post Restructuring and Relisting on IDX

The financial difficulties experienced by PT. Garuda Indonesia, characterized by its inability to meet its obligations to several creditors, resulted in the temporary delisting of its shares from the Indonesia Stock Exchange (IDX) on June 18, 2021. This situation was further exacerbated by the impact of the Covid-19 pandemic, which led to a decline in revenue due to a decrease in passenger numbers and air traffic. Garuda Indonesia initiated a restructuring effort through the Postponement of Debt Payment Obligations (PKPU) route with a number of creditors. This resulted in an extension of the payment terms, a conversion of debt to equity, and a modification of the debt structure. The company also implemented improvements to its operational practices aimed at reducing costs. These efforts have produced positive outcomes, including an increase in equity and a decrease in the company’s liabilities.Top of FormBottom of Form Garuda Indonesia also increased the company’s capital through Additional Capital with Pre-emptive Rights (PMHMETD), Additional Capital without Pre-emptive Rights (PMTHMETD) and investment from the government of the Republic of Indonesia through State Investment (PNM). After completing the restructuring process, Garuda Indonesia (GIAA) shares were free from suspension and were able to return to the Indonesia Stock Exchange (IDX) with an initial price of Rp.204. This study was conducted to determine the fair value of GIAA shares upon their return to IDX in early January 2023. The study utilized two methods: the Discounted Cash Flow (DCF) method and the Relative Valuation method. The DCF method resulted in a fair value of Rp. 165.3 for the shares, implying that the initial issuance value was overvalued by 18.97%. The Relative Valuation method EV/sales ratio, yielded a fair value of Rp. 929 for the shares, suggesting that the current issuance value was undervalued by 355%.

Legal Protection For Consumers On Withdrawal Of Fiduciary Objectives By Financing Companies Due To Covid 19 In Mataram City

The purpose of this study is to obtain the first description: legal protection for consumers for the withdrawal of fiduciary guarantee objects by finance companies due to Covid 19, and second: the role of the Mataram City Consumer Dispute Resolution Agency (BPSK) in resolving consumer financing disputes in Mataram City. This type of research is a normative and empirical law that examines legal materials and data. The approach used is legislation and concepts, then analyzed with qualitative description.
 Legal protection for consumers for the withdrawal of fiduciary guarantee objects by financing companies due to covid 19. The government issues a Countercyclical policy through restructuring or credit relaxation for debtors with the potential to have difficulty fulfilling their obligations; however, suppose the restructuring effort does not result in a settlement. In the case, dispute resolution is carried out based on the clauses in the agreement or credit agreement signed by the parties.
 The Mataram City BPSK resolving consumer financing disputes due to Covid 19 in Mataram City, has an essential role as a quasi-judicial institution in resolving consumer disputes out of court. This institution was born as a form of equitable distribution of justice for the community, especially consumers who have not had access to dispute resolution in the judiciary.

Restructuring IUPAC at the Turn of the 20th Century

AbstractAround the turn of the century IUPAC undertook a major restructuring. Commissions, which had been the heart of IUPAC’s scientific work for most of its 80-year history, were virtually eliminated and largely replaced with a system of peer-reviewed projects [1, 2, 3]. Brigitte Van Tiggelen asked Ted Becker, Secretary General in that key transition period (1996-2003) and a central figure in the restructuring effort, to reflect on the rationale for this significant change and to describe just what was done.

Relationship finance, informed liquidity, and monetary policy

We study the aggregate effects of credit relationships in an economy where lenders provide liquidity and expertise to firms in distress. Lenders' effort in the restructuring of firms' investments endogenously depends on their financial involvement in investments. Firms trade off the benefits of precautionary internal liquidity with the need to incentivize lenders' restructuring effort through their financial involvement. We find that, through these intensive margin effects, credit relationships can induce overinvestment, calling for a positive interest rate policy that departs from the Friedman rule. Credit relationships, however, can enhance the resilience of investment to economic conditions. Unconventional monetary policies that inject liquidity into the lending sector enhance the stabilizing effects of credit relationships but have ambiguous welfare consequences.

A Silver Lining: An Italian Debt Restructuring in the Wake of COVID-19

As the global economy has become more integrated and increasingly complex, the need for a system that administers government default has become more and more apparent. The body of debt that has emerged to fill this need in the context of the Eurozone is an amalgamation of treaty obligations, domestic law constitutional principles, and tensions between state government and supranational government actors. Using a hypothetical Italian restructuring, this paper seeks to explore how these different bodies of law operate together to create a system that protects government function as opposed to guaranteeing creditor recovery. Further, this paper explores how an exogenous shock as the COVID-19 pandemic effects the analyses undertaken at various points in the sovereign debt legal framework. This analysis reveals a silver lining: although Italy has suffered horrible losses as the result of the COVID-19 pandemic, the effects of the pandemic will help mitigate the legal challenges faced by Italy in the course of a local-law restructuring effort and thus smooth the path to a successful post-COVID recovery.

An analysis of Croatian political parties’ pre-election manifestos and healthcare policies

Abstract Background Before the regular 2015 Parliamentary elections in Croatia, we identified and analysed topics and comprehensiveness of health policies (HPs) included in political parties’ pre-election manifestos. After the loss of government confidence, we did a follow up before the 2016 preliminary elections. Here, we present a comparison of the 2015 and 2016 results. Methods We used the Walt-Gilson policy model for the content analysis of pre-election HPs. Five evaluators independently reviewed manifestos for HPs through four dimensions: content, actors, processes and context. HPs proposed by at least two parties were included in the final analysis and by referring to any of four dimensions for specific HP, parties scored one point (maximum of four points per HP). Results Seven out of the eight parties addressed healthcare topics in their manifestos, six discussed healthcare workforce and financing, while five discussed hospital systems, primary care, medical equipment and (re)organization of the healthcare. Parties earned 41% of all points for describing content, 28% for processes, 17% for actors and 14% for context of proposed HPs. Compared to the 2015 results, most comprehensively approached HPs changed to more focus on workforce and medical equipment. Topics of access to healthcare and people with disability earned significantly less points than in 2015. Conclusions Parties’ manifestos in both 2015 and 2016 focused on topics mostly represented in the public discourse on healthcare and daily media coverage. Financing the 2015 elections, as a consequence of a large financial restructuring effort of the hospital system at the time. Health workforce topped the 2016 elections, due to large emigration of health care professionals after legislative changes and Croatia’s accession to the EU. Parties mostly focus on the content while they less frequently address the role of processes, actors, and the context needed for successful implementation of the recommended HPs.

Bank Restructuring and Access to Financial Services: The Spanish Case

AbstractThe Spanish bank sector has restructured extensively since the crisis erupted in 2008 in an attempt to correct the imbalances accumulated during the preceding boom years. Thanks to this restructuring effort, Spain's branch network has been pared back by 32 percent, prompting questions about potential ramifications for the population's access to financial services. Against this backdrop, this paper quantifies, at the municipal level, the segment of the population without access to a bank branch in their home town between 2008 and 2015, paving the way for analysis of the impact of the restructuring effort. It also analyses the role played by the three kinds of deposit institutions in Spain in providing access to financial services via their branch networks. The results show that although the percentage of the Spanish population without access to a branch in their home town has risen, the increase has been small, albeit marked by significant differences from one province to the next. The savings banks (including the former cajas that have converted to banks) are still the most important financial institutions in terms of facilitating branch access to financial services.

The Completion of The Financing Problems in Islamic Banks

This article aims to examine the factors that cause the occurrence of financing problems and solution in islamic Bank is a financial institution that serves as intermediary between parties with excess funds with those who lack the funds in practice every year also experienced a credit crunch. This research is a literature study, namely the academic research which main objective is to develop the theoretical aspect or aspects of the practical benefits. The object of study in this research is the completion of the financing problems in islamic Banks. Problems in financing may occur caused by several factors, among others: the internal factors of the bank, factors internal customers, external factors, failure factors of business as well as the inability of the management. In order to save islamic banks from financing problems and help the customer in order to complete its obligations then the islamic bank can perform restructuring through: rescheduling (rescheduling); reconditioning systems (terms back); restructuring (re-structuring). However if the third restructuring effort was not successful, then the islamic bank can conduct settlement financing problems through: foreclosure of the collateral, the arbitration board of the national sharia, and settlement through litigation. The completion of the financing problems in Islam run through the mechanism of the peace (al-sulh), arbitration (tahkim), and/or the court (al-Qadha).

Integrating the Services and Harnessing the Military Area Commands

ABSTRACTThe Chinese People’s Liberation Army (PLA) is halfway through a multi-decade modernization process. It has begun a major restructuring effort as it shifts its focus from a traditional continental defensive posture to a more maritime-oriented emphasis. In order to create more balanced joint force, it has adjusted the structure of its highest command organization, the Central Military Commission; abolished the former four General Departments and seven Military Regions; created five new joint Theater Commands and service-level commands for the Army and Rocket Force; and is reducing the size of its active duty force by 300,000 personnel. While seeking to overcome numerous internal obstacles, the PLA continues to develop and improve its capabilities to conduct integrated joint operations to deter a variety of threats to China’s sovereignty and territory and, if deterrence fails, to win informationized local war.

Beaconhouse School System (BSS) Restructuring

The case discusses the hierarchical and structural changes brought about in 2008 within the Beaconhouse School System. The restructuring was mainly undertaken due to the school’s rapid expansion and fierce competitive environment. Kasim Kasuri, Chief Executive Officer (CEO) of BSS, felt that the introduction of school group heads (SGHs) in BSS would help in the improvement of coordination with the regional head office and bring more efficiency and devolution at the school level. The CEO felt that even though restructuring had brought about positive changes within the organization, it had also created some problems that needed to be addressed quickly. These problems included: (a) lack of management skills pertaining to managing and appraising employees by the SGHs; (b) new competencies and skill sets requiring strong leadership and managerial expertise in SGHs; (c) refinement of standard operating procedures and also, support infrastructure, for example, information technology (IT) and performance appraisal systems that needed upgradation; and (d) anxiety and confusion experienced by the principals and staff members regarding new reporting lines and relationships. Kasim was now exploring options that would help BSS to exploit its full potential after the restructuring effort. He knew that restructuring had been progressing well, but now the issues that had arisen needed to be resolved quickly so that employees did not feel alienated from the system.

ERP implementation as a broad socio‐economic phenomenon

PurposeThe aim of this paper is to contribute to an understanding of enterprise resource planning (ERP) implementation that goes beyond the restricted time and space limits of a project‐based restructuring effort, and to understanding of it as a broader socio‐economic phenomenon.Design/methodology/approachA case study of the adoption and implementation of an ERP in a Greek bank is examined through an extended multi‐level analytical framework based on Pettigrew's “contextualist” and “processual” research model. The metaphor of the ancient Athenian agora is used to theorise the socio‐economic environment around ERP implementation. In‐depth, semi‐structured interviews and documents were used as data.FindingsFindings suggest that although ERP implementation is seen by the majority of relevant IS literature as happening locally in restricted time‐frame, project‐based efforts, it rather emerges from broader socio‐economic contexts of the agora of techno‐organisational change. Different actors develop bounded understandings (viewpoints) of the agora which they use to navigate and engage it. A viewpoint is also a mechanism to link an actor's local circumstances with broad socio‐economic developments.Research limitations/implicationsThe context of financial services/markets offers possibilities for future research around ERP given the ongoing need for integration of legacy systems. Future case studies in financial service organisations could provide a link between frequent financial crises and technological development. Also, future studies of multiple ERP implementations as well as studies focusing on ERP suppliers’ choices, could add a comparative dimension useful to understand alternative agora configurations.Practical implicationsPractitioners should approach ERP implementation as a broad socio‐economic phenomenon instead of a project‐based episode of change.Originality/valueOriginality lies on the development of an extended, multi‐level analytical approach and on the introduction of a new spatial metaphor for understanding the socio‐economic environment around ERP implementation.

Improving Efficiency and Effectiveness in an Automotive R&D Organization

OVERVIEW:In response to difficult market conditions, Japanese truck manufacturer Mitsubishi Fuso faced the need to reduce its R&D costs by 30 percent. Rather than adopt a simple cost-cutting approach, the company used the situation as an opportunity to apply lean principles in order to transform the way its R&D activities were run, organized, and managed. This article describes the principles, elements, and results of this R&D restructuring effort.

A Longitudinal Study Involving The Utilization Of A Team-Oriented Structure And An Enterprise Resource Planning Framework In A Medium-Sized Organization

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The paper provides an analysis of a custom manufacturer facing issues of growth, productivity concerns, changes in technology, competitive threats, financial management, marketing development, and internal human resource responsibilities, and the response to these issues.<span style="mso-spacerun: yes;">  </span>The paper traces the changes that took place in this medium-sized organization over a fifteen-year period in order to improve the culture of the company.<span style="mso-spacerun: yes;">  </span>The implementation of a team oriented structure utilizing an external change agent, and the reorganization of employee responsibilities in a major restructuring effort are discussed.<span style="mso-spacerun: yes;">  </span>A new enterprise resource planning system (ERP) was implemented to operate and coordinate the company.<span style="mso-spacerun: yes;">  </span>The authors analyze in detail the evolution that has taken place in the company over the last four years.<span style="mso-spacerun: yes;">  </span>The major benefits and learnings of the change are presented.</span></span></p>

Shh! It's vive la résistance …

Purpose – The purpose of this case study is to highlight the importance of recognizing and mitigating covert employee resistance to a change management initiative.Design/methodology/approach – This hypothetical case study takes place at a mid‐sized consulting firm specializing in innovative web development solutions. An underground resistance movement surfaces in the final stages of an organizational restructuring effort, threatening the final implementation phase. The change manager, a young senior partner at the firm, is now faced with the reality that his plan may fail. The psychological underpinnings of the movement, rooted in the natural human tendency to resist change, provide a framework for examining the inherent difficulty of successful change management.Findings – On realization of the underground resistance movement, the change manager must act quickly to quell employee animosity before his plan is ultimately doomed. Although a solution is not explicitly stated within the context of the case st...

Engro Chemical Pakistan Limited—Restructuring the Marketing Division

This case describes the restructuring initiative undertaken to change the forty-year-old structure of the marketing division into a more flexible and rewarding set-up. Towards the beginning of 2008, Khalid Mir, General Manager, Marketing, at Engro Chemical, realized that significant changes were needed in order to address major issues the company was facing in terms of employee turnover, poor inventory control, low market development and sub-optimal merchandizing efforts in its original marketing structure. In March 2008, Engro Chemical Pakistan Limited (ECPL) undertook the restructuring of its marketing division. As Mir progressed through the planning and implementation of the new structure and related changes, he came across several challenges and issues emanating from this change effort. At the end of the case, Mir is contemplating his next steps. How successful had the restructuring effort been? Should he fine-tune the new structure or was another round of restructuring imperative? How could Engro reap maximum benefits out of this newly implemented structure? What lessons could be learnt regarding change management that might be helpful in future restructuring efforts? These questions still remained to be answered.

Fourteenth General Review of Quotas - The Size of the Fund - Initial Considerations

The FY 11–13 medium-term budget (MTB) presented in this paper brings to a close the three-year restructuring effort that began with the FY 09–11 MTB. It secures savings of $100 million in real terms while providing sufficient financing for structural operations and the Fund’s response to the global financial crisis. This budget has been crafted in a period of uncertainty regarding the final scope and duration of the financial crisis as well as the ongoing responsibilities that the Fund may retain even as the crisis unwinds. There is also uncertainty about new responsibilities that may result as a review of the Fund’s mandate is undertaken. Addressing these items will be part of the work agenda to be undertaken in the coming year.

The employment effects of labour legislation in India: a critical essay

ABSTRACTJob security regulations have been central to government interventions in the labour market in India. These have been criticised for restricting employment growth. We argue that job security regulation has not had the negative effects its critics make a case out for. Firms have changed work practices and reorganised job boundaries as the import substituting industrialisation regime was dismantled. Weak enforcement of laws has supported this restructuring effort, with firms resorting to voluntary retirement of workers and increasingly hiring on the basis of flexible contracts. A two‐tier system of employment currently prevails, with job security for the employed insiders and no protection to newly hired outsiders. Unorganised workers' employment prospects have been furthered in this emerging scenario, and their alliance with firms and the state results in an atrophying of job security regulations.

Restructuring With the Middle-Management Advantage

The strategic roles enabling conditions and intermediate outcomes of middle managers during a period of organizational restructuring were examined, with focus on developing an understanding of how senior management can best enable middle managers to achieve radical change. The case method was used, and data were collected from interviews with both middle and senior managers. Results revealed considerable differences between executives and middle managers with regard to middle management's strategic roles, enabling conditions and outcomes. Findings suggest that the 2 groups have different perceptions on how best to support middle management in strategic roles, especially during a crisis. Senior managers felt that middle managers required much explanation and guidance concerning the restructuring effort, viewing middle managers as primarily implementers. Middle managers viewed themselves in a more active role as providers of information necessary in guiding the restructuring decisions. In the area of intermediate outcomes, senior managers emphasized gaining consensus from middle managers to support implementation, but middle managers valued the outcome of securing agency over their own work to act in the best interests of the organization. Thus, middle managers can add value during a time of restructuring by matching strategic roles, enabling conditions and intermediate outcomes with the requirements of the strategic change.

Analysis and Feasibility of China's Coal Industrial Policy

On November 23, 2007, China's NDRC announced its ‘Coal Industrial Policy’. This study begins with an analysis of China's ‘Coal Industrial Policy’. Second, this study assesses the feasibility of the supply and demand and restructuring efforts proposed in the ‘ Industrial Policy.’ It is estimated herein that restructuring efforts will in fact result in a supply shortage of approximately 200–400 million tons in 2013. This supply shortage is expected to have a negative influence on the success of the restructuring effort that constitutes another major goal of the ‘Coal Industrial Policy.’ Moreover, the fact that coal companies account for some 25% of gross industrial output and overall employment in some regions can be expected to result in the central government's decision to close down small mines being challenged by local governments. This assessment of the ‘Coal Industry Policy’ currently being promoted by the Chinese government will serve as exogenous variables for studies on related topics such as China's prospects for coal demand, and the relationship between the country's economic development and energy resources such as coal.