Approaches to Corporate Debt Restructuring in the Wake of Financial Crises

Thomas Laryea

No 2010/002, IMF Staff Position Notes from International Monetary Fund

Abstract: This paper starts from a discussion of the economic case for moderated government intervention in debt restructuring in the nonfinancial corporate sector. It then draws on lessons from past crises to explain three broad approaches that have been applied to corporate debt restructurings in the aftermath of a crisis. From there, it addresses challenges in designing and implementing a comprehensive debt restructuring strategy and draws together some key principles.

Keywords: SPN; restructuring strategy; default case; debt problem; debt substitution; financial support; private sector; restructuring agreement; restructuring process; private sector debt problem; debt restructuring guideline; debt restructuring effort; household debt problem; debt restructuring strategy; pre-existing debt; debt-servicing obligation; restructuring phase; Debt restructuring; Debt strategy; Legal support in revenue administration; Solvency; Global; wake of financial crises; government intervention; Corporate sector (search for similar items in EconPapers)
Pages: 32
Date: 2010-01-26
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Citations: View citations in EconPapers (25)

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