Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words
Auctions may be an appropriate way to reorganize the liabilities of some overindebted East Asian firms - those that are generally well run, for which there is merit in keeping the existing owners in place, but for which conventional bankruptcy proc...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1999/11/439478/corporate-debt-restructuring-proposal-east-asia-auctions-speak-louder-words http://hdl.handle.net/10986/11451 |
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okr-10986-114512021-06-14T11:03:06Z Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words Hausch, Donald B. Ramachandran, S. ACCOUNTING ACUTE INFORMATION ASYMMETRY AMOUNTS OWED AUCTION AUCTION SCHEME AUCTIONS AUTOMATIC LIQUIDATION BANKING SYSTEM BANKRUPTCY COURTS BANKRUPTCY LAW BANKRUPTCY PROCEDURES BIDDERS BIDDING BORROWING CASH BIDS CASH DIVIDENDS CASH FLOWS CASH SURPLUS COMPANY LAW CONVENTIONAL BANKRUPTCY CORPORATE DEBT COURT CREDITOR CREDITOR LIST CREDITORS CREDITORS BID DEBT NEGOTIATIONS DEBT REDUCTION DEBT RESTRUCTURING DEBT SERVICE DEBTOR DEFERRED CREDITORS DEFERRED DEBTS DEPOSITS DIVIDENDS FACE VALUE INDIRECT CREDITORS INSOLVENCY LAWS LIQUIDATION PRESENT VALUE REORGANIZATION TAXPAYERS TRANSACTION COSTS CORPORATE DEBT DEBT RESTRUCTURING AUCTIONS DEBT REPAYMENTS CREDITORS ACCORDS BANKRUPTCY COURTS LIQUIDATION BUSINESS FAILURES Auctions may be an appropriate way to reorganize the liabilities of some overindebted East Asian firms - those that are generally well run, for which there is merit in keeping the existing owners in place, but for which conventional bankruptcy procedures are proving too slow. This Note proposes an auction scheme dubbed Accord - for Auction-based Creditor Ordering by Reducing Debts. Firms pay creditors in sequence as their operating cash flows permit rather than on a promised schedule. Creditors bid for position in the queue by the proportion of debt they forgive, choosing between smaller or more deferred repayments. The outcome: a firm with serviceable debt, controlled by existing owners with an incentive to operate it efficiently. 2012-08-13T15:06:28Z 2012-08-13T15:06:28Z 1999-11 http://documents.worldbank.org/curated/en/1999/11/439478/corporate-debt-restructuring-proposal-east-asia-auctions-speak-louder-words http://hdl.handle.net/10986/11451 English Viewpoint: Public Policy for the Private Sector; Note No. 201 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research East Asia and Pacific |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACUTE INFORMATION ASYMMETRY AMOUNTS OWED AUCTION AUCTION SCHEME AUCTIONS AUTOMATIC LIQUIDATION BANKING SYSTEM BANKRUPTCY COURTS BANKRUPTCY LAW BANKRUPTCY PROCEDURES BIDDERS BIDDING BORROWING CASH BIDS CASH DIVIDENDS CASH FLOWS CASH SURPLUS COMPANY LAW CONVENTIONAL BANKRUPTCY CORPORATE DEBT COURT CREDITOR CREDITOR LIST CREDITORS CREDITORS BID DEBT NEGOTIATIONS DEBT REDUCTION DEBT RESTRUCTURING DEBT SERVICE DEBTOR DEFERRED CREDITORS DEFERRED DEBTS DEPOSITS DIVIDENDS FACE VALUE INDIRECT CREDITORS INSOLVENCY LAWS LIQUIDATION PRESENT VALUE REORGANIZATION TAXPAYERS TRANSACTION COSTS CORPORATE DEBT DEBT RESTRUCTURING AUCTIONS DEBT REPAYMENTS CREDITORS ACCORDS BANKRUPTCY COURTS LIQUIDATION BUSINESS FAILURES |
| spellingShingle |
ACCOUNTING ACUTE INFORMATION ASYMMETRY AMOUNTS OWED AUCTION AUCTION SCHEME AUCTIONS AUTOMATIC LIQUIDATION BANKING SYSTEM BANKRUPTCY COURTS BANKRUPTCY LAW BANKRUPTCY PROCEDURES BIDDERS BIDDING BORROWING CASH BIDS CASH DIVIDENDS CASH FLOWS CASH SURPLUS COMPANY LAW CONVENTIONAL BANKRUPTCY CORPORATE DEBT COURT CREDITOR CREDITOR LIST CREDITORS CREDITORS BID DEBT NEGOTIATIONS DEBT REDUCTION DEBT RESTRUCTURING DEBT SERVICE DEBTOR DEFERRED CREDITORS DEFERRED DEBTS DEPOSITS DIVIDENDS FACE VALUE INDIRECT CREDITORS INSOLVENCY LAWS LIQUIDATION PRESENT VALUE REORGANIZATION TAXPAYERS TRANSACTION COSTS CORPORATE DEBT DEBT RESTRUCTURING AUCTIONS DEBT REPAYMENTS CREDITORS ACCORDS BANKRUPTCY COURTS LIQUIDATION BUSINESS FAILURES Hausch, Donald B. Ramachandran, S. Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words |
| geographic_facet |
East Asia and Pacific |
| relation |
Viewpoint: Public Policy for the Private Sector; Note No. 201 |
| description |
Auctions may be an appropriate way to
reorganize the liabilities of some overindebted East Asian
firms - those that are generally well run, for which there
is merit in keeping the existing owners in place, but for
which conventional bankruptcy procedures are proving too
slow. This Note proposes an auction scheme dubbed Accord -
for Auction-based Creditor Ordering by Reducing Debts. Firms
pay creditors in sequence as their operating cash flows
permit rather than on a promised schedule. Creditors bid for
position in the queue by the proportion of debt they
forgive, choosing between smaller or more deferred
repayments. The outcome: a firm with serviceable debt,
controlled by existing owners with an incentive to operate
it efficiently. |
| format |
Publications & Research :: Viewpoint |
| author |
Hausch, Donald B. Ramachandran, S. |
| author_facet |
Hausch, Donald B. Ramachandran, S. |
| author_sort |
Hausch, Donald B. |
| title |
Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words |
| title_short |
Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words |
| title_full |
Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words |
| title_fullStr |
Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words |
| title_full_unstemmed |
Corporate Debt Restructuring-A Proposal for East Asia : Auctions Speak Louder than Words |
| title_sort |
corporate debt restructuring-a proposal for east asia : auctions speak louder than words |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/1999/11/439478/corporate-debt-restructuring-proposal-east-asia-auctions-speak-louder-words http://hdl.handle.net/10986/11451 |
| _version_ |
1764416778442637312 |