Work detail

An Economic Analysis of the Cross-Border Insolvency Proceedings within the context of the Changes of the Council Regulation (EC) No 1346/2000

Author: Mgr. Bc. Juraj Juhás
Year: 2015 - winter
Leaders: doc. JUDr. Tomáš Richter LL.M., Ph.D.
Work type: Bachelors
Language: Slovak
Pages: 50
Awards and prizes:
Abstract: The content of this bachelor thesis is an economic analysis of the cross-border insolvency
proceeding held according to the Council regulation (EC) No 1346/2000 on insolvency
proceeding and proposals of its amendment. It is focused mainly on changes regarding the
possibility to request an opening secondary proceeding and changes regarding the insolvency
of groups of companies. A basic framework for evaluation of a profitability of a secondary
proceeding opening for a concrete creditor was introduced at the end of the chapter II. It
involves three main factors: ratio of relative shares on the realization of debtor assets in the
case a secondary proceeding was opened and in the case I was not opened; additional incomes
caused by the fact that the debtor assets were administered as a whole (the assets were not
liquidated by parts in several parallel insolvency proceedings) and transaction costs. The
proposed changes of the cross-border insolvency law in the European Union concerning a
limitation of the right to request the opening of a secondary proceeding and obligatory
cooperation between proceedings regarding a member of the same group of companies are
then evaluated with respect to this basic framework.




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