Filtering Speed in a Continental European Reorganization Procedure

45 Pages Posted: 8 Mar 2008 Last revised: 17 Sep 2015

See all articles by Nico Dewaelheyns

Nico Dewaelheyns

KU Leuven - Faculty of Business and Economics (FEB)

Cynthia Van Hulle

KU Leuven - Department of Applied Economics

Date Written: March 2009

Abstract

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

Dewaelheyns, Nico and Van Hulle, Cynthia, Filtering Speed in a Continental European Reorganization Procedure (March 2009). International Review of Law and Economics, Vol. 29, No. 4, 2009. Available at SSRN: https://ssrn.com/abstract=1100673 or http://dx.doi.org/10.2139/ssrn.1100673

Nico Dewaelheyns (Contact Author)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Cynthia Van Hulle

KU Leuven - Department of Applied Economics ( email )

Naamsestraat 69
B-3000 Leuven
BELGIUM
32-16-326734 (Phone)
32-16-326732 (Fax)

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