Corporate debt restructuring : evidence on lending coordination in financial distress : [october 2001]
- We analyse the coordination problem in multi-creditor relationships empirically, relying on a unique panel data set that contains detailed credit-file information on distressed lending relationships in Germany, including information on creditor pools, a legal institution aiming at coordinating lender interests in borrower distress. We report three major findings. First, the existence of creditor pools increases the probability of workout success. Second, the results are consistent with coordination costs being positively related to pool size. Third, major determinants of pool formation are found to be the number of banks, the distribution of lending shares, and the severity of the distress shock.
| Author: | Antje BrunnerGND, Jan Pieter KrahnenORCiDGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-343839 |
| URL: | http://info.worldbank.org/etools/docs/library/50074/brunner_krahnen.pdf |
| ISSN: | 0265-8003 |
| Parent Title (English): | Centre for Economic Policy Research discussion paper series ; No. 3030 |
| Publisher: | Centre for Economic Policy Research |
| Place of publication: | London |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2001 |
| Year of first Publication: | 2001 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2014/08/12 |
| Tag: | bank lending; coordination risk; distress and workout |
| Issue: | october 2001 |
| Page Number: | 41 |
| HeBIS-PPN: | 347254233 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
