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.

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Metadaten
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:Universit├Ątsbibliothek 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:Universit├Ątspublikationen
Licence (German):License LogoDeutsches Urheberrecht