Filtering Speed in a Continental European Reorganization Procedure
45 Pages Posted: 8 Mar 2008 Last revised: 17 Sep 2015
Date Written: March 2009
Recent studies of U.S. Chapter 11 show it to be a relatively efficient procedure. We examine reorganization cases in a Continental European, creditor-oriented bankruptcy system, viz. Belgium, and report very different findings. Using hazard and cure regression models to determine what drives the length of time spent in reorganizations, we find evidence suggesting that courts have little impact on the screening and filtering process. In fact, many drivers of procedure length prove to have the opposite sign of what one would expect if the procedure would efficiently realise its goals. Instead, the procedure appears to be mainly creditor or owner-driven.
Keywords: reorganization, bankruptcy, hazard models, filtering speed
JEL Classification: G33, K20
Suggested Citation: Suggested Citation