Search

In the realm of financial decision-making, it is crucial to consider multiple factors, among which lies the pivotal concern of a firm's potential insolvency. Numerous insolvency prediction models utilize machine learning techniques try to solve this critical aspect. This paper aims to assess the financial performance of financial investment firms listed on the Iraq Stock Exchange (ISX) from 2012 to 2022. A Multi-Layer Perceptron predicting model with a parameter optimizer is proposed integrating an additional feature selection process. For this latter process, three methods are proposed and compared: Principal Component Analysis, correlation coefficient, and Particle Swarm Optimization. Through the fusion of financial ratios with machine learning, our model exhibits improved forecast accuracy and timeliness in predicting firms' insolvency. The highest accuracy model is the integrated MLP + PCA model, at 98.7%. The other models, MLP + PSO and MLP + CC, also exhibit strong performance, with 0.3% and 1.1% less accuracy, respectively, compared to the first model, indicating that the first model serves as a powerful predictive approach. [ABSTRACT FROM AUTHOR]

In the wake of the COVID-19 pandemic, the Russian war of aggression against Ukraine and the resurgence of the Middle East conflict, government measures to support the economy have intervened massively in economic activity and thus influenced the real insolvency situation. This situation creates disruptive conditions in insolvency counselling and requires comprehensive risk management for the strategic safeguarding of internal processes in insolvency counselling companies. Despite a number of academic articles that address a lack of risk awareness in insolvency counselling, there have been no valid statistical surveys on this topic to date. The topic has also been largely ignored in practice. This article presents a study that examines risk management in insolvency advisory companies in the context of government intervention in the global economy from 2020 to 2023. The aim of the research is to assess the necessity and existence of risk management in these companies. A survey of 350 insolvency advisors was conducted between March and April 2024, from which 113 complete data sets could be analysed. The central hypothesis of the research study is that a significant majority of insolvency advisory companies have insufficient risk awareness and do not implement comprehensive risk management strategies. The survey results confirm that risk management is rarely practised and that a well-founded risk awareness is lacking in most consulting companies. It is noteworthy that two-thirds of those surveyed consider the benefits of risk management to be low, although more than half of those surveyed recognise increased risks due to government crisis measures. Ultimately, this study concludes with a recommendation that a standardised EU insolvency regulation could offer the greatest benefits for the insolvency sector, as it would simplify risk management for consultants in all member states. [ABSTRACT FROM AUTHOR]

There has been a recent flurry of decisions from offshore common law jurisdictions dealing with the issue of whether the ultimate beneficial holder in a New York law bond structure has standing as a " contingent creditor " to present a winding up petition (or the local procedural equivalent) against the Issuer. First-instance courts in Bermuda, the Cayman Islands, and Hong Kong have held that the ultimate beneficial holder is not a contingent creditor for this purpose. The BVI Commercial Court has held that it is. The BVI decision had been appealed by the company, but this has now been withdrawn. In view of the lack of consideration of the issue at the appellate level, this article examines the reasoning of the decisions in detail. It concludes that the approach taken in the BVI is correct. The approach taken in the other jurisdictions is flawed, based on an erroneous conflation between privity of contract and creditor status and relies on unsound case law that has been rejected by more recent authority from the UK Supreme Court. [ABSTRACT FROM AUTHOR]

The article considers some issues related to the bankruptcy of the employer, which arises as a result of his insolvency, in particular, the issue of employee protection. It is noted that bankruptcy affects both employers and employees differently. Thus, the employer may be liable both to third-party creditors (financial institutions, suppliers, landlords) and to be in debt to the employees, if the salary or its part has not been paid, as well as the remuneration due to the employees. At the same time, it can have negative consequences for the workers, since their livelihood and their families can be completely dependent on such salary or remuneration. It was concluded that the issues of employee protection in case of employer’s insolvency have always been important and needed to be resolved, since employees are the least protected subjects of labor relations, who need guarantees of protection of their rights from both the employer and the state. Since the bankruptcy of the employer negatively affects both the social and financial situation of the employees, it leads to the termination of the employment contract concluded with them both for an indefinite period and a fixed-term employment contract before the expiration of its validity period. It was concluded that the adoption by the Verkhovna Rada of Ukraine of new legislative acts on the protection of the rights of employees in case of bankruptcy of the enterprise is a positive step, especially today, when the country is in a state of war against the Russian aggressor. It is noted that the implementation of the proposed norms will contribute to the approximation of Ukrainian legislation to European labor standards and will make it economically unprofitable for the employer to withhold salary, will create conditions for reducing the amount of existing debt for its payment, will increase the level of economic protection of the employee in case of late payment of work, and will also ensure the creation of a mechanism wage compensation in case of insolvency of the employer. [ABSTRACT FROM AUTHOR]

In cases where a debtor in an obligation becomes unable to pay “on account” any more, the only way left to the creditor or creditors of such debtor to protect their financial interests is to open bankruptcy proceedings against such debtor. However, in practice, not everything is so simple, which makes it necessary to study this issue. The purpose of the article is to reveal relevant issues that arise during the opening of bankruptcy proceedings at the initiative of the creditor, to study the problems that arise in this area and to formulate proposals for improving Ukrainian bankruptcy legislation. The creditor’s appeal to the court with an application to open bankruptcy proceedings against his debtor is one of the manifestations of the right of the initiating creditor to judicial protection. It is emphasized that the possibility of the creditor to apply to the debt repayment mechanisms of his insolvent debtor through bankruptcy procedures is provided only for those creditors who have monetary claims against legal entities. If the debtor of the creditor is a natural person, then such a creditor is limited in the ability to protect his rights through bankruptcy procedures, and can use all the tools offered by the legislation in this area, only in the event that the debtor himself – a natural person shows a desire to initiate proceedings in an insolvency case against himself. It is proposed to provide in the legislation of Ukraine the right of a creditor to initiate bankruptcy proceedings against a debtor who is an individual entrepreneur. The conditions for opening bankruptcy proceedings at the creditor’s request have been studied. The presence of a legal dispute as a reason for refusing to open bankruptcy proceedings was analyzed, and judicial practice in this area was studied. The provisions of the bankruptcy legislation regarding the ability of the initiating creditor to submit a proposal for the nomination of an arbitration manager to perform the powers of a property manager or a restructuring manager before the day of the start of operation of the Unified Judicial Information and Telecommunication System in the application for opening proceedings in the bankruptcy case have been analyzed. [ABSTRACT FROM AUTHOR]

With the entry into force of the Code of Ukraine on Bankruptcy Procedures, the norms governing the recognition of a natural person as bankrupt began to apply to all natural persons, regardless of whether they have the status of an entrepreneur. This became a new stage in the history of the development of domestic insolvency (bankruptcy) law, since now the participants in the economic process are natural persons, whose debts are not related to the implementation of economic activity, and the court, in whose proceedings such a case is pending, can deal with legal relations, which were traditionally considered by general courts in civil proceedings. All this determines the need to clarify the legal nature of the institution of insolvency of natural persons. The purpose of the article is to clarify the legal nature of the institution of insolvency of individuals and the place of this institution in the legal system of Ukraine. The author considered the approaches that exist in legal science regarding the legal nature and place of the institution of insolvency of a natural person. It is emphasized that since the issues of bankruptcy and insolvency have historically always been in the scope of economic law and process, and the introduction of the possibility of declaring bankrupt individuals without such status, along with the bankruptcy of natural persons – entrepreneurs, does not mean the transfer of these legal relations to the sphere of civil law. Rather, the opposite is the case here - the spread of economic and legal norms to the peculiarities of legal regulation of the status of natural persons without the status of a subject of entrepreneurial activity. It is substantiated that during the time of its existence, commercial courts have demonstrated quality and efficiency in resolving commercial disputes, including developing an effective toolkit for considering bankruptcy cases, which is currently effectively used in the case of insolvency of individuals. The concentration of all disputes involving the debtor within the insolvency case of a natural person was analyzed. It was emphasized that from the moment of the opening of proceedings in the case of insolvency of an individual, all disputes arising regarding the latter’s property interests are decided by the commercial court. [ABSTRACT FROM AUTHOR]

This study investigates the implications of the German Federal Constitutional Court’s ruling on November 15, 2023, declaring the second supplementary budget of 2021 unconstitutional, specifically the reallocation of unused COVID-19 debt authorisations for green initiatives. This landmark decision clarifies the exceptions to the debt brake and the handling of special funds, significantly affecting the climate and transformation fund, indirectly influencing other special funds aimed at stabilising the energy sector and rebuilding from the 2021 flood disaster. The research method involves a comprehensive review of legal documents, government reports, and financial data to assess the impact on Germany’s ability to fund its climate and energy transition policies, particularly through the climate and transformation fund and the broader implications for economic policy and insolvency rates. The main findings highlight the conflict between fiscal discipline, as mandated by the debt brake, and the government’s intention to finance environmental initiatives with unutilised COVID-19 debts. The ruling underscores the challenges of balancing fiscal restrictions with urgent environmental goals, questioning the flexibility of budgetary and tax policies to support significant investments in sustainability and climate protection. The conclusion calls for reevaluating how green agendas can be funded within stringent fiscal rules, emphasising the need for innovative financing solutions and a commitment to reconciling economic stability with ecological sustainability. This case study presents a critical analysis of the delicate balance between fiscal responsibility and achieving vital environmental objectives, urging rethink on financing green initiatives within the confines of fiscal and constitutional boundaries.

The rapidly developing coronavirus pandemic’s footprint requires a deeper investigation in terms of the consequences on the business environment. The literature on this subject is vast, as confirmed by the present work, the unprecedented health situation creating the conditions for studies, analyses and syntheses related to the specific framework created by the crisis with resounding effects on the economic world. Highlighting how the pandemic situation has affected the legal position of enterprises, in terms of insolvency, dissolution, deregistration, etc., is the primary goal of the research on the repercussions of the pandemic wave on the entrepreneurial environment. In addition, we want to quickly discuss the level of interest that academics have in the topic, which is a crucial component in understanding the mechanisms underlying the events and their substance. The methods of analysis of the main topic define the methodology of scientific research, being represented by specific research techniques such as literature review, analysis, synthesis and specific means of bibliometrics. Overall, the coronavirus pandemic is significantly affecting businesses’ legal circumstances, and researchers from all over the world are becoming interested in this issue.

Actio Pauliana in bankruptcy, as stipulated under Law Number 37 of 2004, empowers the Curator to seek the annulment of transactions undertaken by the bankrupt debtor, causing harm to the bankrupt estate. Actio Pauliana requires proof that a third party, the debtor's transaction partner is proven to not have acted in good faith, as outlined in the law. However, the legislation lacks clarity on the criteria safeguarding third parties in good faith against Actio Pauliana claims. This research employs a doctrinal research method involving a statute, conceptual, case, and comparative approach. The novelty of this research expounds upon and elucidates the need for amendments to Law Number 37 of 2004, particularly concerning the criteria protecting third parties in good faith. These criteria could be differentiated based on the third parties' position in bankruptcy and the nature of the objects constituting the bankrupt estate, including tangible and intangible movable objects, unregistered objects, immovable objects, and/or registered objects. Furthermore, proposed improvements to the law include refining provisions related to creditors' right to file Actio Pauliana lawsuits, affirming a one-year period rather than a deadline, and addressing timelines within Actio Pauliana lawsuits. Actio Pauliana claims should only be submitted after the debtor's bankruptcy declaration, excluding the Suspension of Debt Payment Obligations (PKPU) process. In conclusion, the research proposes possible solutions, such as the issuance of a Regulation (Perma) or a Circular Letter (SEMA) by the Supreme Court, containing the essential improvements to Law Number 37 of 2004.

This paper addresses the problem of insolvency prediction in Spanish SMEs from a binary classification perspective. From a dataset containing more than 325 dependent variables of different natures (including demographic and economic-financial) and 17562 SMEs, a decision tree has been fitted that with a 0.93 accuracy predicts the state of a company and allows it to identify the most relevant variables in such prediction. The results obtained indicate that, in general, insolvency can be predicted from very few financial variables and with an anticipation of more than 10 years before the insolvency event. As a result, it is possible to provide early warnings to SMEs based on the indicators identified. [ABSTRACT FROM AUTHOR]

Insurance for human life is very important, and it requires a sense of comfort and safety. So that many companies have established their business in the field of insurance, behind insurance companies that provide security protection. Not all companies run smoothly in other words the company is inseparable from the threat of bankruptcy. This research focuses on legal certainty for customers when an insurance company with claim obligations is declared bankrupt. The research problem addresses the challenges faced by customers in such situations and the legal protection available to them. The purpose of this research is to find out the responsibility of insurance companies that are declared bankrupt in fulfilling customer claims and to find out the legal certainty for customers in cases when insurance companies that have claims obligations are declared bankrupt. The methodology used is normative juridical, by analyzing the law based on literature study, articles in the Civil Code, Law Number 21 of 2011 concerning OJK, Law Number 37 of 2004 concerning Bankruptcy and postponement of debt payment obligations, and Insurance Law. The results discuss the importance of legal protection provided by the Financial Services Authority and the Deposit Insurance Corporation for insurance customers in bankruptcy cases. The findings underscore the need for compliance with certain legal provisions to ensure customer protection, especially in cases involving insolvent insurance companies. The implications of this study emphasize the importance of legal certainty and the role of regulatory bodies in protecting customer rights in the insurance sector. [ABSTRACT FROM AUTHOR]

Historical scholarship on Chinese diasporic enterprise has largely rejected culturalist paradigms in favour of structuralist ones, but the question of culture remains contentious. It has also been addressed primarily via case studies of Southeast Asia's largest and most prominent Chinese firms. Through examining the collection of 101 Chinese insolvency and bankruptcy files created in Sydney between 1857 and 1926, this paper presents an unseen view of Chinese diasporic enterprise. It argues that Chinese entrepreneurs employed strategies common across business in Australia, coined and used distinctive methods of their own and applied cultural resources imported from China within complex and dynamic Chinese Australian entrepreneurial approaches. That these were so nuanced, I suggest, reveals the considerable scope for balancing different practices in Chinese business overseas that existed beyond the most familiar examples. [ABSTRACT FROM AUTHOR]

This research aims to determine whether the covid 19 pandemic affected the bankruptcy of companies for which insolvency proceedings were initiated, or whether it was detectable from their financial statements that the companies were headed for bankruptcy even before the covid 19 pandemic. Part of the research was an evaluation of the economic status of the investigated companies using selected prediction models, i.e. financial analysis tools, from 2016 to 2021. [ABSTRACT FROM AUTHOR]

Stablecoins are among the fast-growing innovations in money and payments that have emerged in recent years. They are a type of digital assets that purport to maintain a stable value by holding a pool of backing assets or by algorithmic means. Some types of stablecoins have the potential to be used by many people in the UK and elsewhere for everyday payments and other financial transactions, including collateral arrangements. The provision of financial collateral is an important factor contributing to the cost-efficiency and stability of the financial system. To support the smooth functioning of the provision of such financial collateral, legislative measures, in particular the Financial Collateral Arrangements (No.2) Regulations 2003, have modified certain requirements that might otherwise create issues for the use of financial collateral. This article examines the application of the 2003 Regulations to stablecoins--in particular the extent to which stablecoins may qualify as "cash" for these purposes--concluding that at least some types of slahlecoins should constitute "cash" and, therefore, benefit from the special regime for financial collateral arrangements. [ABSTRACT FROM AUTHOR]

This research aims to explore the fiscal and public finance viability on climate physical risk externalities cost for building social-economic-environmental sustainability. It analyzes climate physical risk impact on the real business cycle to change the macroeconomic output functions, its regressive cyclic impact alters tax revenue income and public expenditure function; This research also analyzes that the climate physical risk escalates social-economic inequality and change fiscal-financial policy functions, illustrates how the climate damage cost and adaptation cost distorts fiscal-finance cyclical and structural equilibrium function. This research uses binary and multinomial logistic regression analysis, dynamic stochastic general equilibrium method (DSGE) and Bayesian estimation model. Based on the climate disaster compensation scenarios, damage cost and adaptation cost, analyzing the increased public expenditure and reduced revenue income, demonstrates how climate physical risk externalities generate binary regression to financial fiscal equilibrium, trigger structural and cyclical public budgetary deficit and fiscal cliff. This research explores counterfactual balancing measures to compensate the fiscal deficit from climate physical risk: effectively allocating resources and conducting the financial fiscal intervention, building greening fiscal financial system for creating climate fiscal space. [ABSTRACT FROM AUTHOR]

This study investigates the implications of the German Federal Constitutional Court's ruling on November 15, 2023, declaring the second supplementary budget of 2021 unconstitutional, specifically the reallocation of unused COVID-19 debt authorisations for green initiatives. This landmark decision clarifies the exceptions to the debt brake and the handling of special funds, significantly affecting the climate and transformation fund, indirectly influencing other special funds aimed at stabilising the energy sector and rebuilding from the 2021 flood disaster. The research method involves a comprehensive review of legal documents, government reports, and financial data to assess the impact on Germany's ability to fund its climate and energy transition policies, particularly through the climate and transformation fund and the broader implications for economic policy and insolvency rates. The main findings highlight the conflict between fiscal discipline, as mandated by the debt brake, and the government's intention to finance environmental initiatives with unutilised COVID-19 debts. The ruling underscores the challenges of balancing fiscal restrictions with urgent environmental goals, questioning the flexibility of budgetary and tax policies to support significant investments in sustainability and climate protection. The conclusion calls for reevaluating how green agendas can be funded within stringent fiscal rules, emphasising the need for innovative financing solutions and a commitment to reconciling economic stability with ecological sustainability. This case study presents a critical analysis of the delicate balance between fiscal responsibility and achieving vital environmental objectives, urging rethink on financing green initiatives within the confines of fiscal and constitutional boundaries. [ABSTRACT FROM AUTHOR]

Actio Pauliana in bankruptcy, as stipulated under Law Number 37 of 2004, empowers the Curator to seek the annulment of transactions undertaken by the bankrupt debtor, causing harm to the bankrupt estate. Actio Pauliana requires proof that a third party, the debtor's transaction partner is proven to not have acted in good faith, as outlined in the law. However, the legislation lacks clarity on the criteria safeguarding third parties in good faith against Actio Pauliana claims. This research employs a doctrinal research method involving a statute, conceptual, case, and comparative approach. The novelty of this research expounds upon and elucidates the need for amendments to Law Number 37 of 2004, particularly concerning the criteria protecting third parties in good faith. These criteria could be differentiated based on the third parties' position in bankruptcy and the nature of the objects constituting the bankrupt estate, including tangible and intangible movable objects, unregistered objects, immovable objects, and/or registered objects. Furthermore, proposed improvements to the law include refining provisions related to creditors' right to file Actio Pauliana lawsuits, affirming a one-year period rather than a deadline, and addressing timelines within Actio Pauliana lawsuits. Actio Pauliana claims should only be submitted after the debtor's bankruptcy declaration, excluding the Suspension of Debt Payment Obligations (PKPU) process. In conclusion, the research proposes possible solutions, such as the issuance of a Regulation (Perma) or a Circular Letter (SEMA) by the Supreme Court, containing the essential improvements to Law Number 37 of 2004. [ABSTRACT FROM AUTHOR]

The purpose of the paper is to analyze the main aspects regarding the insolvency of companies in Romania. The main objectives considered were the theoretical presentation of the concept of insolvency, the principles of insolvency, legislative regulations, the report of the judicial liquidator. In the case study presented for the company X SRL, we presented some accounting records, the statement of payments and receipts, as well as information related to the liquidation balance sheet.

Financial distress identification remains an essential topic in the scientific literature due to its importance for society and the economy. The advancements in information technology and the escalating volume of stored data have led to the emergence of financial distress that transcends the realm of financial statements and its' indicators (ratios). The feature space could be expanded by incorporating new perspectives on feature data categories such as macroeconomics, sectors, social, board, management, judicial incident, etc. However, the increased dimensionality results in sparse data and overfitted models. This study proposes a new approach for efficient financial distress classification assessment by combining dimensionality reduction and machine learning techniques. The proposed framework aims to identify a subset of features leading to the minimization of the loss function describing the financial distress in an enterprise. During the study, 15 dimensionality reduction techniques with different numbers of features and 17 machine-learning models were compared. Overall, 1,432 experiments were performed using Lithuanian enterprise data covering the period from 2015 to 2022. Results revealed that the artificial neural network (ANN) model with 30 ranked features identified using the Random Forest mean decreasing Gini (RF_MDG) feature selection technique provided the highest AUC score. Moreover, this study has introduced a novel approach for feature extraction, which could improve financial distress classification models. [ABSTRACT FROM AUTHOR]

Copyright of Ruch Prawniczy, Ekonomiczny i Socjologiczny (0035-9629) is the property of Adam Mickiewicz University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Regression is one of the most common statistical tools used in exploring relationships between socio-economic phenomena. Traditional regression models, however, have limited reliability in case of spatial data. One solution to this problem is the geographically weighted regression (GWR), which considers spatial processes as variables. Traditional GWR assumes that all modelled processes operate on the same spatial bandwidth. A novel extension allows each relationship to vary according to different spatial bandwidths, leading to the multiscale geographically weighted (MGWR) method. This paper is comparing standard OLS, GWR and MGWR by investigating corporate liquidation. The author estimated the spatial variability of settlement-level corporate liquidations using meso-level economic, municipal, and transportation data. The findings of the three models indicated that MGWR outperformed the other two methods. Among the economic factors affecting liquidation, the global effect of the unemployment rate and the local effect of per capita income may be observed. The presence of bank branches in the settlement and the weight of the industrial sector significantly impact business liquidations, as well as transportation indicators. [ABSTRACT FROM AUTHOR]

Reorganization or revival of the financially distressed corporate person is the prime objective of insolvency law. To rationalize the said objective, the insolvency law in India— Insolvency and Bankruptcy Code 2016 has adopted the manager-displacement model of the insolvency regime. It has become progressively evident from existing literature that the development of corporate governance mechanisms may have imperative implications on the aptness of a nation's legal system and its accomplishments. The existing evolutionary theory asserts that corporate bankruptcy and corporate governance structure complement each other. The historical account of corporate ownership structure in India represents a predominance of concentrated ownership patterns. Through the perspective of the existing evolutionary theory of corporate insolvency, the paper analyzes the corporate ownership structure and development of corporate insolvency law in India. The article also explores whether corporate ownership structure as a corporate governance mechanism can explain the progression of the insolvency regime in India. The findings of this paper would be of significance for jurisdictions that are considering reforms within their existing corporate insolvency law. [ABSTRACT FROM AUTHOR]

This paper considers whether UK corporate insolvency law and the UK Insolvency Act 1986 have extra-territorial effect post-Brexit, and whether – and to what extent – it is for the courts or the legislature to extend any extra-territorial effect. It does not deal with 'inward recognition', ie the recognition of foreign judgments and orders in the UK. Brexit has left something of a vacuum and provisions which might otherwise have applied extra-territorially, at least within the EU, may now have been deprived completely of extra-territorial effect. But all is not lost and Brexit here presents opportunities. There is room for clarifying that particular provisions which might otherwise have discriminated between EU application and application vis-à-vis the rest of the world can now be given a uniform global interpretation. Courts should, however, proceed incrementally in extending the extra-territorial scope of UK corporate insolvency law. A bolder reform would be to enact legislation that specifies the exact extent to which the UK Insolvency Act applies extra-territorially. Legislation obviously depends on parliamentary time and requires detailed drafting but also provides the opportunity for the UK to showcase that it remains at the forefront of international insolvency developments. [ABSTRACT FROM AUTHOR]

In the context of public administrations after COVID-19, this paper formulates and validates a digital model of tutoring (e-tutoring) for small and medium enterprises (SMEs) by public administrations or PAs to help the former reduce their risks to fold in their first few years of existence and with the support of private professionals (economists, accountants, business advisors, managers, etc.). The model draws on ideas about relational administration (RA), a concept that is yet to be fully exploited or assessed in the literature. Several hypotheses derived from the model are formulated and tested using a polytomic-nominal logistic regression. A questionnaire was sent to and returned by 236 small and medium entrepreneurs in Spain facing insolvency proceedings to identify main reasons for business failure and if or how they would accept online tutoring from private professionals associated with PAs. Findings suggest that SM entrepreneurs agree with receiving selected forms of tutoring, requiring public administrations to enhance capabilities for joint information provision and decision making through the use of information and communication technologies or ICTs. These findings have important implications for the potential restructuring of public administrations, their collaborations with professionals, and the future co-design and implementation of e-government services by PAs [ABSTRACT FROM AUTHOR]

The article is devoted to a comprehensive assessment of the formation and development of the bankruptcy institute in Ukraine, including the formation of institutions that implement the state bankruptcy policy, the shortcomings and advantages of the functioning of each of them, the main functions of the Ministry of Justice of Ukraine in the implementation of the state bankruptcy policy are defined. The periodization of the formation and development of the administrative and legal regulation of the bankruptcy institute in Ukraine is proposed. In the course of the study, questions related to the main factors, which, in our opinion, had the greatest impact on the development of the bankruptcy institute in Ukraine and on its modernization and transformation were highlighted. In our opinion, the factors influencing the development of the bankruptcy institute in Ukraine are the creation of state institutions, implementation and change of normative legal acts in the bankruptcy procedure. In our opinion, the administrative-legal mechanism for regulating relations that arise in the bankruptcy procedure is a dynamic process and is in constant development and is able to adapt to the changes that occur in the bankruptcy procedure. The leading place in the regulation of the bankruptcy procedure is assigned to the Ministry of Justice of Ukraine. It is appropriate to note that the Ministry of Justice of Ukraine, in the implementation of the state policy on bankruptcy, is endowed with control and supervision, regulatory and informational and analytical functions. In our opinion, it is necessary to determine the spheres of relations in which the functions of the Ministry of Justice of Ukraine are implemented. At the very end, it is worth summarizing that effective administrative and legal regulation is possible only if the ratio of the goal of legal regulation and the actual result of legal regulation is achieved. One of the effective ways to achieve the ratio of the goal of legal regulation and the actual result of legal regulation is to establish cooperation between the structural divisions of the inter-territorial offices of the Ministry of Justice of Ukraine and the Department for Bankruptcy Procedures, by creating round tables with representatives of inter-regional offices (persons who are specifically engaged in auditing the activities of arbitration administrators), in order to discuss controversial issues that arise in the process of conducting inspections (other control measures), in order to eliminate gaps in the legislation, identified in real situations, when the arbitration managers exercise the relevant powers; with subsequent official publication of clarifications and recommendations, in the form of information sheets, by the Department. [ABSTRACT FROM AUTHOR]

Although resorting to arbitration is a common and desirable method for resolving international commercial disputes, insolvency disputes, remain within the jurisdiction of judicial, executive, and governmental institutions due to their connection to general economic and commercial public order. Therefore, resorting to a single institution for adjudication is ruled out and practically, these disputes resolution are dealt within the framework of multiple and independent institutions. This issue is more complicated regarding enterprise group insolvency. Facilitating disputes in this regard requires coordination and cooperation among role-playing institutions in this field including courts, liquidators, and other stakeholders. Due to the failure to establish uniform institutions, UNCITRAL has drafted a model law to coordinate insolvency proceedings in enterprise group. Consequently, regarding the necessity of understanding and achieving this model law results, this research, through a descriptive and analytical method, studies the dimensions and infrastructures for establishing communication and coordination among institutions and advancing coordinated and effective proceedings, while addresses adjudicating institutions independence under the UNCITRAL Model Law. On the other hand, it examines the anticipated arrangements for various stages of the proceedings. [ABSTRACT FROM AUTHOR]

The literature reports mixed findings on the role of government intervention, even during times of crisis. The recent Covid‐19 pandemic damaged the financial health of many small firms. This study examines whether government subsidies are associated with bankruptcy rates for firms with deteriorating financial health. Using a sample of 18,422 firms from 44 countries, we estimate a logistic model that accounts for rare events. Results indicate that those firms which receive government support are more likely to be associated with insolvency, even in the absence of liquidity issues and overdue financial obligations. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

In Europe, the contribution of SMEs is enormous in terms of job creation and added value, although in recent years worrying levels of business failure and disappearance have occurred. These circumstances have led various researchers and international organisations to recognise the need for indicators that will enable the early detection of insolvency risks so that preventive and corrective measures can be taken. In this context, Directive (EU) 2019/1023 obliges EU Member States to define early warning indicators of insolvency, and in most cases has been transposed into the respective national regulations. The present paper aims to identify financial and non-financial indicators of insolvency risks in SMEs, to facilitate early detection. To this end, we analyse a sample of 1,736 Spanish SMEs, studying their behaviour for the period 2010-2020. Certain financial and non-financial factors are identified as early warning indicators of insolvency, a result that will prove useful both for the self-diagnosis of insolvency and for the design of restructuring plans to enhance SMEs’ chances of survival.

The insolvency procedure is a complex procedure because it combines 3 components, namely: an economic one, a judicial one and a social one. Consequently, the judge's intervention in this procedure is more limited, compared to the common law civil process. The syndic judge is an actor in the insolvency proceedings, having a role, a competence and attributions expressly provided by law. The role, powers and importance of the syndic judge in insolvency proceedings, but also in insolvency prevention proceedings, involves a changing analysis at the level of the member states of the European Union.

The relevance of the research topic is in the need to develop new ideas on the possible development of insolvency law in the event of an unexpected and unforeseen serious commercial or financial crisis of a structural nature. The purpose of the presented text is to indicate the possible directions of changes in the specific and characteristic insolvency institution of “debt relief”. The text was prepared using mainly a formal-dogmatic research method as the study is a general reflection on debt relief of an insolvent debtor (bankrupt), not connected with any particular legal system. It is a well-known and popular institution in many insolvency legal systems worldwide. However, when it comes to the details of the regulation, there may be even serious differences. The problem of debt relief is considered in the context of the protection of property rights of creditors. The creditorʼs claim is, after all, a component of his property. The study briefly discusses the arguments for the admissibility of debt relief in the context of the creditorʼs property right. An important part of the study deals with the issue of collective (group) debt relief of many debtors at one time. In the event of structural crises or as a result of special disturbances (e.g. wars, natural disasters), individual debt relief procedures may be too heavy a burden for the judicial system, and thus insolvency courts (other organs), due to extraordinary situation may be ineffective. In the course of the study, atten- tion was paid to some kind of redefinition of the insolvency debt relief structure. The practical value of the study is expressed in the possibility of its application in designing legal norms and establishing state policy in counteracting insolvency

Failed entrepreneurs often encounter negative societal perceptions that impede their ability to learn from failure, take risks, and innovate business models. Reducing this stigma appears crucial to support entrepreneurship and foster innovation. However, the precise relationship between stigma reduction and desired outcomes remains uncertain. This study addresses this gap by examining the variables influencing the perception of business failure. Through a systematic literature review and content analysis, we identified 20 variables within the network. A subsequent cross-impact analysis helped delineate these variables as critical, influential, dependent, inert, or neuter. Stigma emerged as the critical variable, exerting significant influence. Culture, bankruptcy laws, social capital, the frequency of business failures, and entrepreneurial attributes played pivotal roles as influential variables. Dependent variables encompassed the rate of entrepreneurship, entrepreneurial intention, and learning from failure. This study underscores the importance of comprehending the interplay between these variables and their impact on entrepreneurial outcomes. Although the influence of societal perceptions on business model innovation proved minimal, failed entrepreneurs displayed resilience in defying stigma and engaging in innovative endeavors. Our findings shed light on the significance of societal perceptions within entrepreneurial ecosystems and the adaptability of entrepreneurs in innovating existing business models. This study lays a foundation for further research into the dynamics of these influences. [ABSTRACT FROM AUTHOR]

Creditor legal protection against debtor bankruptcy is based on bankruptcy law. Circumstances in which the debtor’s assets are insufficient to fulfill his payment obligations. Meanwhile, the definition of bankruptcy is universal confiscation of all liquidation assets, the release of which is attempted by a curator. based on Law Number 37 of the Republic of Indonesia, 2004, will split suspension of payment obligations. The debtor defaults only if the total amount owed exceeds the value of the asset. Bankruptcy-free maturity requirements are required as a bankruptcy condition so that the law does not state bankruptcy status as a bankruptcy condition, providing legal protection and legal basis. The study found that efforts to obtain legal protection for creditors include providing preventive legal protection aimed at preventing violations against creditors in the event of a bankrupt debtor, from payment obligations. Legal protection includes the principles of law, equality, Paribas, structured debt, debt collection, the universal principle, and the principle of legal justice, especially in Indonesian bankruptcy. [ABSTRACT FROM AUTHOR]

The Great Depression and Dust Bowl of the 1930s caused great hardship for many Canadian farmers, especially in the Prairie Provinces. In response to falling prices and crop yields, as well as increasing debt levels, Parliament enacted the Farmers’ Creditors Arrangement Act (FCAA). The mandate of the bold, new statute was to keep farmers on the land by reducing and rescheduling debts to suit the productive value of the farmland and the capacity of the farmer to pay. There is little academic scholarship that examines the FCAA and how it functioned in practice. This article builds on an earlier pilot study of FCAA case files in two Manitoba counties and widens the empirical lens to consider applications from several more Manitoba counties as well as two Ontario counties. It offers the first analysis of how the FCAA operated in Ontario, employing both quantitative and qualitative data to provide a rich commentary, using examples of actual farmers. The analysis reveals that the application of the FCAA was strongly influenced by local, county-level factors. Rather surprisingly, there were few factors that can be attributed to differences between the two provinces more generally, notwithstanding the fact that there are notable variations in farming practices, operations, and conditions in Ontario, a non-prairie province, and Manitoba, a prairie province. A secondary finding is that, in general, the compromises formulated under the FCAA were highly tailored to the individual farmer’s circumstances. However, there were nevertheless pockets of case files where a fairly uniform approach was used to resolve the financial hardship of farmers who were, seemingly, all in quite similar circumstances. Accordingly, the picture that emerges is complex. FCAA practice evinces stark contrasts — generating compromises which could be either bespoke or boilerplate — and limiting the extent to which one can generalize based on the empirical data from individual counties or regions. [ABSTRACT FROM AUTHOR]

Copyright of Revista Română de Drept al Afacerilor is the property of Wolters Kluwer Romania and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article is devoted to the study of the problems of forming the branch of law and legislation on bankruptcy (insolvency). The purpose of the article is to reveal the characteristic features and signs of the law of bankruptcy (insolvency) and the formulation of the corresponding concept, as well as the justification of the formation of the branch of law and legislation on bankruptcy (insolvency). The author emphasized that after previous scientific studies, where the law of insolvency (bankruptcy) was defined as a sub-branch of commercial law, the legislation on bankruptcy changed significantly, which led to the expansion of its scope. It is substantiated that the codification of bankruptcy legislation also led to changes in the content of the scientific doctrine of insolvency (bankruptcy) law as a sub-branch of a commercial law, in particular in matters of subject, principles and methods of legal regulation of bankruptcy (insolvency) relations. It is proved that the existence of the matter, principles, methods of legal regulation of bankruptcy relations with the updated content, as well as the codification act - the Code of Ukraine on bankruptcy procedures, in totality shows that the law of bankruptcy (insolvency) has the status of a complex branch of law. Signs of bankruptcy (insolvency) law have been identified. This is a complex branch of law that: combines substantive and procedural law norms of other branches of law; regulates public relations related to the insolvency of legal entities and individuals; provides for the assignment by the debtor for the benefit of all his creditors of all his property to the court, which in the universal proceedings, with the help of the arbitration administration, supervises the joint property and disposes of it; imperative and dispositive principles are applied to participants in legal relations in order to achieve a common interest; aimed at full or maximum possible fulfillment of established monetary obligations. The concept of bankruptcy (insolvency) law is formulated as a complex branch of law that combines substantive and procedural norms of other branches of law, regulates social relations related to the insolvency of legal entities and individuals, where in universal legal proceedings using imperative and dispositive principles to the participants of legal relationship in order to achieve common interest, the court, with the help of an arbitration administrator, supervises all the debtor's property and orders with the aim of full or maximum possible fulfillment of established monetary claims of creditors. A new structure of the Code of Ukraine on bankruptcy procedures was proposed, where the fourth book is devoted to cross-border bankruptcy. In the general part, separate sections will refer, in particular, to financial restructuring, pre-trial sanitation, as well as procedural issues of bankruptcy (insolvency). The separation of another code, called the "Code on Insolvency of Individuals" or "Code on Consumer Bankruptcy of Individuals" from the Code of Ukraine on bankruptcy procedures, has been proven. The necessity to include provisions on bankruptcy in the Constitution of Ukraine is argued, since these relations have deeply penetrated into all spheres of the economy and social life of the country. For this purpose, it is proposed to add the words: "legal regime of bankruptcy (insolvency)" to paragraph 8 part 1 of Article 92 of the Constitution of Ukraine. The existence of the branch of legislation on bankruptcy (insolvency) as a union of interrelated legislative acts, including codified ones, which have a common subject of legal regulation of relations related to the insolvency of legal entities is substantiated. [ABSTRACT FROM AUTHOR]

This article provides a legal analysis of the bankruptcy law in Indonesia and its impact on debtors, creditors, and the public. It discusses the stages involved in the bankruptcy settlement process, such as the application for bankruptcy, examination of the application, appointment of a receiver, distribution of debtor's assets, and the closing decision. The research concludes that the bankruptcy law in Indonesia offers fair and equitable protection to all parties involved. The article also mentions the use of the PKPU stage, which allows debtors and creditors to negotiate debt repayment plans before resorting to bankruptcy. For more in-depth information, the document titled "The Role of Balai Harta Peninggalan as Curator in The Management and Settlement of Bankrupt Assets" explores the role of Balai Harta Peninggalan as a curator in managing and settling bankrupt assets. [Extracted from the article]