Corporate Restructuring (Lessons from Experience)

Detail information of 'Corporate Restructuring (Lessons from Experience)'
	Title: Corporate Restructuring (Lessons from Experience) Author: Michael Pomerleano, William Shaw Publisher: The World Bank Category: Business Studies Subject: Management Viewed: 67 Posted: Tuesday, November- 6-2007, 10:29:04 PM Post by: Hello (abcd)
The severe financial crises that devastated emerging markets over the past decade underlined important gaps in our ability to deal with corporate distress. The Asian crisis, and ensuing crises in Turkey and Argentina, led to massive declines in output and corporate profitability and to widespread corporate insolvencies. Moreover, corporate difficulties are not limited to countries that have suffered a recent, spectacular crisis. In many countries, corporate weaknesses or “silent” distress may be setting the stage for future financial crises. There is no magic bullet for addressing systemic corporate distress. Coping with it requires a host of simultaneous measures, such as financial engineering techniques for restructuring, consideration of the impact of the tax system on incentives for restructuring, policy approaches to the disposal of bad debts, efforts to strengthen bankruptcy courts and the legal framework for insolvency, and the establishment of procedures for out-of-court workouts. It has become clear that governments, as well as the multilateral institutions, often lack the resources and expertise required to address corporate distress on a large scale and that policies, institutions, and legal frameworks may not be adequate to the task. A scarcity of skills (legal, financial) in the private sector and in the judiciary is also found to be an impediment in many countries. click here to download the book