Ponadczasowość regulacji prawnych dotyczących niewypłacalności

The study describes the legal regulations concerning insolvency in the period of the Second Polish Republic. The political system of the Republic of Poland in the years 1926–1935 is described as authoritarian in order to distinguish it from the total fascist system. The difficult economic and financial situation of the Polish state during the post-partition period required state interference in introducing legal regulations ensuring protection of creditors, while taking into account the rights of debtors who became insolvent for no fault of their own. Bankruptcy became a society-wide problem, albeit of varying severity. The study describes legal regulations concerning insolvency, which are included both in the Ordinance of the President of the Republic of Poland of 24 October 1934, the Law on Settlement Proceedings (Journal of Laws of 1934, No. 93, item 836, with binding force from 1 January 1935), and in the Ordinance of the President of the Republic of Poland of 24 October 1934, the Bankruptcy Law (Journal of Laws of 1934, No. 93, item 834, with binding force from 1 January 1935). The above-mentioned legal acts contained regulations adjusted to the state of insolvency, which is the result of the debtor’s difficult economic and financial situation. The state of the debtor’s insolvency or the threat of insolvency determined whether it was possible to conduct a procedure in which the debtor entered into an arrangement with creditors or whether the debtor should be declared bankrupt. In the case of bankruptcy, a trustee appointed by the bankruptcy court managed the assets of the bankrupt, constituting the bankruptcy estate, and the bankrupt was deprived of the right to manage their assets. The main purpose of bankruptcy proceedings was to sell the assets included in the bankruptcy estate and to achieve equal satisfaction of creditors of the bankrupt debtor. The course of these proceedings was different and depended on whether it was possible to make an arrangement with the creditors or whether it was necessary to implement procedures related to the liquidation of the bankrupt debtor’s assets. Although both legal acts were enacted in the interwar period, they were in force until the entry into force of the Act of 28 February 2003, the Bankruptcy and Reorganization Law (Journal of Laws of 2003, No. 60, item 535), that is, for almost 60 years. Therefore, regardless of the changes in the political system of the Polish state, the insolvency regulations from the authoritarian period in the Second Republic remained in force for many decades. The timelessness of these regulations is confirmed by the fact that some of the legal regulations that were enacted in 1934 are still applied today, although they have been partially modified and adapted to the current economic situation. The entry into force on 1 January 2016 of the Law of 15 May 2018 on Restructuring Law (Journal of Laws of 2015, item 978) resulted in a return to the separation of legal regulations that can be implemented depending on the debtor’s difficult financial situation. The Restructuring Law currently regulates the proceedings enabling an insolvent debtor or a debtor at risk of insolvency to enter into an arrangement with creditors, the effects of an arrangement as well as the conduct of the rehabilitation proceedings. The purpose of the various types of restructuring proceedings is to avoid declaring bankruptcy. On the other hand, the Bankruptcy Law, similarly to the period of the Second Polish Republic, regulates the procedure, the main purpose of which is to achieve equal satisfaction of the creditors of the debtor in the bankruptcy to the highest possible extent, and only if rational considerations allow the debtor’s current enterprise to be retained.

The rights of the debtor in the preventive settlement procedure in the Saudi bankruptcy law: حقوق المدين في إجراء التسوية الوقائية في نظام الإفلاس السعودي

The Saudi bankruptcy law approved a set of rights for the debtor in each of its procedures, including the rights related to the preventive settlement procedure, and the aim of highlighting these rights is to contribute to preserving them, achieving justice, and avoiding harm to the side of the bankrupt debtor, especially since the organizers' interest in the bankruptcy law It is primarily concerned with the creditor's side, and how to obtain his rights from the debtor. In this research, the debtor’s rights contained in the provisions of the law relating to the preventive settlement procedure will be shed light and collected within this framework The research relied on the inductive and analytical approach, whereby the provisions of the Saudi bankruptcy law were extrapolated, then the rights of the debtor were extracted from its folds, and these rights were analyzed. The rights in this procedure are summarized as following: the right to request the debtor to initiate the procedure, to inform him of the date of consideration of the request, to request the suspension of claims during the procedure, to not claim debts other than the status during the procedure period, to maintain his contractual obligations, and to obtain financing. The research came out with a set of important results that reveal the comprehensiveness of the provisions of the Saudi bankruptcy law, its concern for the rights of all parties, including the debtor, as well as the expansion of the scope of application of the provisions of specific and spatial bankruptcy procedures, and the like The research also included a set of recommendations in which I saw addressing some observations during the analysis of these rights, such as not allowing the debtor to manage his activity during the period from the opening of the procedure, until the creditors have completed voting on the plan, as well as granting the creditor the right to demand the opening of the preventive settlement procedure, And not limiting this right to the debtor only, and so on.

Amtek Auto – financing under distress

Learning outcomes The primary teaching objective is to discuss the capital raising efforts of a firm under financial distress. It also provides supporting data to calculate cost of capital, DuPont/modified DuPont values and Altman’s Z-Score that can appropriately be incorporated into the discussion. Case-B provides information and data of the company’s recent performance and to changes in bankruptcy law in India. Overall, this case study provides ample scope to discuss, understand and provide the solution to the following key corporate finance themes as follows: 1. Analyzing accounting statements and examine potential earnings quality issue. 2. Predicting default and bankruptcy using qualitative analysis, financial ratios, traditional and modified DuPont models and Altman’s Z score model. 3. Examining the capital raising efforts of a distressed firm, which has already defaulted on borrowings. 4. To explore the impact of changes in regulation on the turnaround efforts of the firm as well as on the promoters of the firm. Case overview/synopsis Since 2005, Amtek Auto moved at a breathtaking speed with the goal of reaching $10bn in sales, from the current level of about $1.2bn. The group had acquired more than a dozen companies spending about Rs.5,000cr. ($850m) during this period primarily through borrowed funds. However, the market and business expansion was not happening as expected. The company’s capacity utilization was just about 40% (approx.) during much of this period. The mounting fixed costs of operation and debt servicing grew to the level of unsustainability, led the firm to default on its borrowing. Now the company had to quickly recapitalize itself to run its operations and retain the premier position in auto component industry. The company and its promoters were considering various methods of debt restructuring, asset sale and further equity infusion. Complexity academic level Introductory and elective level corporate finance. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

The impact of bankruptcy regimes on entrepreneurship and innovation. Is there any relationship?

The literature review indicates that bankruptcy law may play an important role in and be one of the factors influencing the development of entrepreneurship, innovation, and thus economic growth, among other things. In previous studies, the analysis of the impact of bankruptcy law on individual variables has been conducted independently. Our aim was to conduct a holistic analysis, taking several factors into account simultaneously. Therefore, a descriptive model was proposed, based on which the following research hypothesis was formulated: In countries characterised by an effective legal system and at the same time debtor-friendly bankruptcy law, the level of risk acceptance among entrepreneurs is higher, which is reflected in higher levels of entrepreneurship and innovation. Based on the selected variables, a cross-sectional analysis was conducted using linear models estimated on the basis of the least-squares method. Additionally, to strengthen the conclusions drawn, the models were assessed in such a way enabling the analysis of causality as defined by Granger based on the two-step process. The results obtained allowed us to confirm the research hypothesis: in countries characterised by an efficient legal system and at the same time debtor-friendly bankruptcy law, the level of risk acceptance among entrepreneurs is higher, which is reflected in higher levels of entrepreneurship and innovation. The research results are particularly important from the point of view of legislators who are responsible for drafting amendments to bankruptcy law. Including certain debtor-friendly provisions may, in the long run, lead to increased entrepreneurship and innovation, and thus economic development.

The Urgency of Regulations Revision Related to Filing Bankruptcy and Postponing Debt Payment Obligations Amid the COVID-19 Pandemic

The purpose of this research is to analyze the requirements of bankruptcy regulations and postponement of debt payment obligations on the increase in bankruptcy filings and delays in debt payment obligations in the middle of the COVID-19 Pandemic. This research uses a normative juridical research method with a statutory approach and a conceptual approach that is supported by primary and secondary legal materials. The results of this research indicate that the increase in filing for bankrBankruptcydelays in paying debt obligations at the Commercial Court is due to unclear rules regarding filing for bankrBankruptcyecially the requirements in filing for bank bankruptcy do not specify the amount of debt that can be filed for bankrBankruptcyre is a need for consideration in making and stipulating bankruptcy arrangements, both in the Draft Civil Procedure Code and the Bankruptcy Law and Suspension of Debt Payment Obligations, especially on issues: the amount of debtor debt, simple evidence, creditors holding guarantees in bankrBankruptcyminal confiscation in bankrBankruptcyker wage rating, bankruptcy estate settlement, and position of the arbitration award in bankruptcy cases.

Analysis of the Issue of Real Rights for Security in the Perspective of Bankruptcy Law

Objectives: China’s opening to the outside world is getting higher and higher, which effectively promotes China’s economic development. Under such economic development background, more and more different kinds of economic situations appear in the market. Methods: The continuous progress and development of society has provided good conditions for the perfection of bankruptcy law and guarantee law. In the process of dealing with collateral in bankruptcy law, the complexity of its environment leads to the interaction between bankruptcy law and guarantee law. Results: From the perspective of law enforcement, there are still some incompatibilities between China’s guarantee law and bankruptcy law to be solved. This paper discusses the real right for security from the perspective of bankruptcy law, and analyzes the issues related to the development of bankruptcy law and security law that affect the real right for security, aiming at providing assistance for the healthy and orderly development of the industry. Conclusion: In the research, we need to pay close attention to the various processes of bankruptcy procedure and the implementation methods of real right for security, so as to ensure the responsibility system of real right protection.

Legal protection for debtors in determining the application requirements for suspension of debt payment obligations

The establishment of the Bankruptcy Law aims to overcome the difficulties of the business world in terms of debt and receivables in continuing their activities. However, in practice the PKPU and Bankruptcy institutions are used as a means of resolving ordinary civil disputes, this is due to Article 225 paragraph (3) and (5) in conjunction with Article 222 paragraph (1) and (2). The purpose of this study is to analyze the ratio legis for debtors in relation to the ratio legis Article 225 paragraph (3) and paragraph (5) associated with the purpose of establishing Bankruptcy and Suspension Of Debt Payment Obligations (UUK-PKPU). This research is normative legal research with a statute approach, the case approach, historical approach, comparative approach, and the conceptual approach. The legal materials used are primary, secondary, and tertiary. The analysis technique uses legal logic, legal interpretation teleologically, hermeneutics, grammatically, and systematically. The results of the study indicate that the ratio legis regarding PKPU as regulated in Article 225 paragraph (3) and paragraph (5) has a vague norm when it comes to the purpose of establishing UUK-PKPU, that PKPU is a means for debtors so that debtors can restructure their debts. So that no rights are given to debtors who are not present at the PKPU session resulting in no legal protection for the debtor to defend himself by conveying the reasons for the debtor's absence.