Corporate Restructuring : Lessons from Experience

In periods of economic crisis, suggest Pomerleano (a specialist in the Financial Sector Operations and Policy Department, World Bank) and Shaw (a former lead economist in the World Bank's Development Prospects Group), governments and multilateral institutions often lack the resources and expertise needed to address corporate distress on a large scale; and policies, institutions, and legal frameworks may not be adequate to the task either. They collect papers form a March 2004 World Bank conference on international best practices in addressing systemic corporate distress. The 15 contributions examine attempts at restructuring around the world, particularly in East Asia; compare restructuring regimes to the US Chapter 11 system; discuss successful asset management companies in Asia; analyze Indonesian restructuring of legal and regulatory jurisdictions; and offer advice on such issues as debt and firm vulnerability, estimating default risk and economy-wide risk transfer, and effective frameworks for insolvency and credit rights. This Timely Volume Takes An In-depth Look At The Efforts To Fight Corporate Crisis In Indonesia, Korea, Malaysia, And Thailand, Among Others, And Discusses The Vital Role Of Governments In Securing And Enabling Legal System, Effective Out-of-court Workouts, Supportive Tax Regimes, And Complementary Policy And Regulatory Initiatives To Confront Systemic Corporate Distress.--jacket. Introduction : Toward Better Practices In Systemic Corporate Restructuring / Michael Pomerleano -- Ch. 1. Synopsis Of Conference Papers / William Shaw -- Ch. 2. Policy Approaches To Corporate Restructuring Around The World : What Worked, What Failed? / Stijn Claessens -- Ch. 3. Recent International Experiences In The Use Of Voluntary Workouts Under Distressed Conditions / Ira Lieberman, Mario Gobbo, William P. Mako And Ruth L. Neyens -- Ch. 4. Emerging-market And Crisis Applications For Out-of-court Workouts : Lessons From East Asia, 1998-2001 / William P. Mako -- Ch. 5. Are More Restructuring Regimes Becoming Like The U.s. Chapter 11 System? / James H. Zukin, Alan Fragen And Dorian Lowell. Edited By Michael Pomerleano, William Shaw. Presentations From The Conference, Corporate Restructuring-- International Best Practices, Hosted In March 2004 By The World Bank Group And Held In Washington, D.c. Includes Bibliographical References. In the wake of the periodic financial crises of the late 1990s, the international financial institutions and many experts have recognized the need for a strategy to avoid and mitigate the severity of crises in the corporate sector. Addressing this problem requires the complementary efforts of policymakers, regulators, lawyers, insolvency experts, corporate restructuring specialists, and financiers.What are the roots of corporate distress? Can systemic corporate crises be predicted? What is the role of legal frameworks in preventing and coping with a crisis? What are the most effective financial techniques for dealing with distressed corporates? This timely volume takes a multidisciplinary perspective on corporate restructuring, and examines international experiences in dealing with corporate crises.