Garrido, Jose M.
Description:
This study provides a conceptual
framework for the analysis of the questions of out-of-court
debt restructuring from a policy-oriented perspective. The
starting point of the analysis is given by the World Bank
principles for effective insolvency and creditor rights
systems. The study offers an overview of out-of-court
restructuring, which is not seen as fundamentally opposed to
formal insolvency procedures. Actually, the study
contemplates different restructuring techniques as forming a
continuum to the treatment of financial difficulties. The
study discusses the advantages and disadvantages of all the
debt restructuring techniques, and concludes, in this
regard, that a legal system may contain a number of options
a menu that can cover different sets of circumstances. In
the end, the law may offer a toolbox with very different
instruments that the parties may use depending on the
specific facts of the case. The study also provides a
checklist that can be used to examine the features of a
legal system that bear a direct influence on debt
restructuring activities.