CEU Electronic Theses and Dissertations, 2017
| Author | Vidovic, Ivona |
|---|---|
| Title | Out-of-Court Debt Restructuring versus Pre-Insolvency Proceedings: Two Sides of the Same Coin? A Comparative Analysis of the US and Croatian Solutions |
| Summary | When faced with a threat of bankruptcy, troubled debtors can decide to liquidate their companies or reorganize, giving their once viable business a second chance. A shift towards the latter approach has been very much welcomed in the wake of the global financial crisis, as it provides a second chance for companies with financial difficulties and thus helps achieve the economic recovery. States were faced with a choice whether to regulate such reorganization; if yes, how and to what degree should they interfere with the restructuring of the debtor? This question has been answered differently in various jurisdictions. The United States is the leader in this field with the regulatory framework enabling debtors to reorganize both in and out-of-court, through formal bankruptcy Chapter 11 reorganization or informal workouts between the debtor and his creditors. The European perspective is slowly changing from liquidation to reorganization-oriented bankruptcy, introducing pre-insolvency proceedings as a sort of a counterpart to American workouts. Both types of debt restructuring tools serve the same purpose of keeping the entity alive, reorganizing its structure and enabling it to continue with its business activities. This thesis analyzes the advantages and disadvantages of out-of-court reorganizations from the standpoint of US workouts, with the underlying rationale being to ascertain how can the Croatian insolvency law benefit from the lessons offered by this informal method of debt restructuring. Croatian legal framework is examined from a comparative perspective, analyzing both current and previous acts containing provisions on pre-insolvency settlement procedure, as well as the placement of Croatian pre-insolvency proceedings in the wider EU environment. Upon reaching the conclusions on the analysis, a final standpoint is provided on where does the Croatian pre-insolvency procedure stand and in which direction, if any, should it move forward. |
| Supervisor | Tajti, Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2017/vidovic_ivona.pdf |
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