• Media type: E-Book
  • Title: Pre-Bankruptcy Dynamics and Unsecured Debt
  • Contributor: Schoors, Koen J. L. [Author]; Coussement, Peter [Other]; Leyman, Bart [Other]
  • Published: [S.l.]: SSRN, [2008]
  • Published in: 3rd Annual Conference on Empirical Legal Studies Papers
  • Extent: 1 Online-Ressource (41 p)
  • Language: Not determined
  • DOI: 10.2139/ssrn.1123864
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 2, 2008 erstellt
  • Description: We analyze the impact of pre-bankruptcy dynamics on the levels of unsecured debt at the start of bankruptcy procedures, using a unique sample of small distressed firms that reorganize under Belgian court-supervision. These firms rely on trade credit if banks withdraw their lending prior to bankruptcy. Apparently trade creditors are willing to finance a distressed firm's shortfall in cash flow during this period. They also accumulate unpaid taxes and social contributions in the running-up to bankruptcy reorganization, pushing the government administration in the unintended role of lender of last resort. These findings suggest that pre-bankruptcy dynamics strongly affect the debt structure at the moment of initiation of the procedure and in this way the ultimate outcome of the restructuring process
  • Access State: Open Access