EconStor >
Goethe-Universität Frankfurt am Main >
Center for Financial Studies (CFS), Universität Frankfurt a. M.  >
CFS Working Paper Series, Universität Frankfurt a. M. >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/25375
  
Title:Corporate debt restructuring: Evidence on lender coordination in financial distress PDF Logo
Authors:Brunner, Antje
Krahnen, Jan Pieter
Issue Date:2001
Series/Report no.:CFS Working Paper 2001/04
Abstract:In the recent theoretical literature on lending risk, the coordination problem in multicreditor relationships have been analyzed extensively. We address this topic empirically, relying on a unique panel data set that includes detailed credit-file information on distressed lending relationships in Germany. In particular, it includes information on creditor pools, a legal institution aiming at coordinating lender interests in borrower distress. We report three major findings. First, the existence of creditor pools increases the probability of workout success. Second, the results are consistent with coordination costs being positively related to pool size. Third, major determinants of pool formation are found to be the number of banks, the distribution of lending shares, and the severity of the distress shock.
Subjects:Bank Lending
Distress
Workout
Coordination Risk
JEL:D74
G21
G33
G34
Persistent Identifier of the first edition:urn:nbn:de:hebis:30-9811
Document Type:Working Paper
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

Files in This Item:
File Description SizeFormat
342633708.PDF284.69 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/25375

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.