We incorporate asymmetric information, individual concerns, such as liability risks or reputational issues, and insolvency administrator remuneration in a stylized model in which the interactions between the insolvency administrator and the creditors of a company are analysed.
However, in our incomplete market setup, the value CR of counterparty risk from the point of view of the bank as a whole ignores the misalignement of interest between the shareholders and the creditors of a bank.
Isn't it proper that depositors and bondholders – the creditors of a financial institution – be aware of and responsible for their actions and where they commit their funds?
The company said losses were reduced as a result of a rise in semiconductor prices in the fall and approval by its creditors of a 4.9 trillion won plan for exchanging debt for equity and extending debts.
Since Shinsei and Nippon Credit are both creditors of a number of visibly struggling companies, like the convenience store operator Daiei Inc. and the building contractors Hazama Corporation and Kumagai Gumi, the government will probably face the same tough choice repeatedly -- unless politicians can somehow ban the granting of guarantees against further deterioration in loan values.
This third part of the PECL will contain principles concerning conditions, the effect of illegality and matters common to all component parts of the law of obligations such as plurality of debtors and creditors, assignment of claims, substitution of a new debtor, set-off and prescription.
Credit Suisse First Boston and other creditors of Owens Corning, a leading maker of insulation, oppose a plan they say would give too much of the bankrupt company's assets to asbestos victims.
The Second Circuit's decision makes for a more predictable legal environment for foreign central banks that choose to maintain reserves in New York and presents a significant obstacle to creditors of a country who look to central bank assets in the United States to collect on unpaid judgments.
Lawyers for a group of bondholders and other creditors of Adelphia Communications asked a bankruptcy court yesterday to block payments of $300 million that had been designated for Adelphia's banks.
"Proper leadership, communication with unit owners and creditors, and implementation of a plan is far preferable to the costs, delays and negative impacts of bankruptcy," he said.
