Legal Framework

This module contains two elements.

1. It addresses the principles and policies necessary to develop a comprehensive insolvency law, pertaining to key issues of orderly and effective insolvency procedures, but with particular focus on the suitability of particular models, principles, and guidelines for emerging markets.

2. It considers the significance of orienting insolvency law within the broader commercial framework and the effect of the unique cultural context on the design of effective insolvency laws.


Institutional Framework

The institutional module focuses on capacity and implementation of insolvency law through the institutional framework. This framework broadly addresses such topics as:

n Design of the bankruptcy court.
n Significance of separate bankruptcy courts.
n The effective functioning of the bankruptcy court within time-bound procedures.
n Identification of the proper balance in judicial discretion appellate procedures.
n Training, qualification and capacity of the bankruptcy judges.

Informal Corporate Work-Outs and Restructurings

In terms of maximizing asset value and preserving jobs, an enterprise is usually more valuable as a going concern than if it is liquidated.In recognition of this fact, this model encourages participants to restore an enterprise to financial viability if possible. It also supports the establishment of an enabling environment through clear laws and procedures that provide:

n Disclosure of accurate financial information.
n Encourage the provision of financing to viable distressed companies.
n Provide for a broad range of restructuring activities.

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