ABSTRACT
An efficient insolvency framework should, therefore, enable early and cost-effective rescue of viable businesses in order to avoid subsequent liquidation. The estimation of the impact of preventive restructuring regimes hinges upon the construction of a quantitative indicator reflecting the efficiency of the existing regulations across European Union (EU) member states. Several attempts to quantify or compare the efficiency of different insolvency frameworks exist in the literature. The estimation of the impact of preventive restructuring regimes hinges upon the construction of a quantitative indicator reflecting the efficiency of the existing regulations across EU member states. The chapter focuses on the impact of national preventing restructuring frameworks on corporate deleveraging, in particular in terms of financial stability and economic activity. The analysis is based on Nonperforming loans data from the International Monetary Fund Financial Soundness Indicators, covering twenty-seven EU member states and the period from 2007 to 2012.
