On the issue of bankruptcy of a peasant (farm) economy

Morozova, Oksana; Kichalyuk, Olga

doi:10.1051/e3sconf/202127308036

Cited by 2 publications

(1 citation statement)

References 7 publications

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“…The main issue from the law perspective is that for each creditor to have a fair and equal position. From a legal standpoint, the transfer of the assets of insolvent enterprises appears fair, but from an economic standpoint, it is not [26,27].…”

Section: Literature Reviewmentioning

confidence: 99%

A Negative Pledge as an Alternative Solution to Achieve the Pari Passu Pro-Rata Parte Principle

Lie¹

2023

IJSDP

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The relationship between creditors and debtors is unique. Creditors need debtors as customers and bind them in credit agreements. Creditors tend to be suspicious of debtors as debtors selectively disclose information. This relationship follows the agency theory. Creditors always want a fair and equal position with other creditors. This research is unique in discussing the situation between creditors in the concept of negative pledge and pari passu pro-rata parte. Aside from that, the study also observes the relationship between creditors and debtors in credit agreements and discusses solutions that can be given by debtors to creditors so that the pari passu pro-rata parte principle can be achieved. The pari passu pro-rata parte principle is regulated in the Indonesian Civil Code article 1131 - 1132 and Law on Bankruptcy article 176 jo. 189. The methodology used is the normative juridical method, specifically hermeneutics and idiographic from the economic and financial perspective. The research concluded that debtors and creditors could ensure a fair and equal position by implementing negative pledge through Master Credit Agreement and Security Sharing Agreement. Future research should study on the role of curators and judges as key people to keep the concept of negative pledge running well.

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Section: Literature Reviewmentioning

confidence: 99%