Bankruptcy Reform in Russia: The Case for Creditor Rights in Russia

Bankruptcy Reform in Russia: The Case for Creditor Rights in Russia Russia at the dawn of the 21st century is experiencing a collapsing economy. In a world where healthy economies create and maintain capital, it is critically important that all efforts be made to assure all creditors and especially private direct investors that in the event of debtor-insolvency their business interests are protected. The role of bankruptcy law under a regime of what I call “creditor rights” is limited. The court system can be used to avoid a “creditors's race” to grab assets. Whenever the “going concern” value of a firm is greater than the sum of the assets sold separately a case can be made for a bankruptcy procedure as a way of protecting creditor rights. This paper examines the historical origins of the “creditor rights tradition” and advocates such a regime for modern Russia. This paper holds that especially with respect to Russia, we would do well to heed John Stuart Mill's advice and support reforms that favor creditors and protect the value of their rights. Those insolvent firms owned and managed by political oligarchs should be cut down, dismembered, and the assets they command transferred to new and more imaginative and solvent groups of managers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Review of Austrian Economics Springer Journals

Bankruptcy Reform in Russia: The Case for Creditor Rights in Russia

Loading next page...
 
/lp/springer_journal/bankruptcy-reform-in-russia-the-case-for-creditor-rights-in-russia-ejlWOBfcfp
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2000 by Kluwer Academic Publishers
Subject
Economics; Public Finance; Political Science; History of Economic Thought/Methodology
ISSN
0889-3047
eISSN
1573-7128
D.O.I.
10.1023/A:1007856501865
Publisher site
See Article on Publisher Site

Abstract

Russia at the dawn of the 21st century is experiencing a collapsing economy. In a world where healthy economies create and maintain capital, it is critically important that all efforts be made to assure all creditors and especially private direct investors that in the event of debtor-insolvency their business interests are protected. The role of bankruptcy law under a regime of what I call “creditor rights” is limited. The court system can be used to avoid a “creditors's race” to grab assets. Whenever the “going concern” value of a firm is greater than the sum of the assets sold separately a case can be made for a bankruptcy procedure as a way of protecting creditor rights. This paper examines the historical origins of the “creditor rights tradition” and advocates such a regime for modern Russia. This paper holds that especially with respect to Russia, we would do well to heed John Stuart Mill's advice and support reforms that favor creditors and protect the value of their rights. Those insolvent firms owned and managed by political oligarchs should be cut down, dismembered, and the assets they command transferred to new and more imaginative and solvent groups of managers.

Journal

The Review of Austrian EconomicsSpringer Journals

Published: Oct 8, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off