Financial Distress and Emerging Markets

21 Pages Posted: 13 Oct 2008 Last revised: 7 Dec 2008

Stephen J. Lubben

Seton Hall University - School of Law

Date Written: October 10, 2008

Abstract

The United States' adoption of chapter 11 in the late 1970s began a process of world-wide reevaluation of the mechanisms for resolving financial distress. Especially following a series of financial shocks in the 1990s, corporate reorganization procedures have become vital parts of the new commercial laws of developing economies. At the same time, the United States and other developed economies have recently enacted procedures that suggest an increased willingness to respect and support reorganization in emerging markets. As signs of convergence, albeit at the most general of levels, begin to emerge with regard to the resolution of private-sector financial distress, the reality of global financial integration has greatly complicated the resolution of sovereign financial distress. In short, the general financial distress framework in emerging markets is still a work in progress, leaving gaps for regulators to address and investors to exploit.

Keywords: Chapter 11, bankruptcy, insolvency, emerging markets, Lubben

Suggested Citation

Lubben, Stephen J., Financial Distress and Emerging Markets (October 10, 2008). Seton Hall Public Law Research Paper No. 1282355. Available at SSRN: https://ssrn.com/abstract=1282355 or http://dx.doi.org/10.2139/ssrn.1282355

Stephen J. Lubben (Contact Author)

Seton Hall University - School of Law ( email )

One Newark Center
Newark, NJ 07102-5210
United States
973-642-8857 (Phone)

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