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A university spokeswoman told EducationGuardian.co.uk today: "We are obviously disappointed with this line of action, particularly as the university has reached amicable agreements with the majority of staff affected by the redundancy exercise, and we are continuing discussions in this regard.
We again form the null to be rejected: Amicable agreements with the debtors (redemptions) have no effect on the recovery rate.
While 'cured' cases always show a 100%% recovery (see Wolter and Rösch 2014 for a brief introduction to 'cured' events), amicable agreements do not necessarily lead to a full recovery (the average recovery rate for amicable agreements in our sample is 82 %; see Table 1).
Amicable agreements (redemptions) are somewhat different to so-called 'cured' cases that have recently been discussed in the default prediction literature (e.g., Tong et al. 2012; Wolter and Rösch 2014).
Based on a unique data set of 909 defaulted retail and commercial (self-employed and SMEs) credit customers in Germany, whose original loans were made by 123 different banks, our article confirms a significant positive influence of collateral, and of amicable agreements between the debtor and the bank (redemption), on the recovery rate [1 − loss given default (LGD)].
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