Serving the creditors after insolvency filings: from value creation to value distribution

This paper provides original empirical evidence on the financial outcome of insolvency filings in Europe. We adopt a cross-country analysis of the determinants of recovery rates isolating three types of creditors (junior, senior, and new money claims). We investigate the structure of recoveries on a unique hand-collected sample of bankrupt firms in France, Germany, and the UK. We initially question value maximization, and study to which extent the legal provisions prevailing after insolvency filing can influence creditors’ overall recoveries. Three procedures differ significantly from our benchmark (UK liquidations). French continuation and UK receivership exert a positive influence onto total repayments, while such influence becomes negative under French liquidation. We relate this finding to the ability of the two former procedures to improve coordination among the creditors, monitoring of the debtor, and/or incentives to file early. We then analyze value distribution by examining competition between the categories of creditors. We show that the insolvency systems do not converge. Junior and senior creditors are better served under the German and the French continuation procedures than in any other bankruptcy path. At the opposite, the UK liquidation procedures fail to satisfactorily serve the junior/senior creditors. Still, nearly all the insolvency procedures support fresh financing by protecting quite well new money claims. Overall, we do not confirm any superiority of one family of insolvency system over another, but rather stress the importance of an appropriate design of the procedures, especially regarding the incentives they create before and after insolvency filing.     

Defining A Product Market for Spanish-Language Broadcast Media: Lessons from United States v. Univision Communications,Inc. and Hispanic Broadcasting

In 2003, a media merger with dramatic content and policy implications went largely unnoticed. Little attention was paid to the transaction because it did not affect the majority; it affected the largest minority population in the United States: Hispanics. Although up to 65% of Hispanics prefer Spanish-language media, most broadcast media now come from one corporation, Univision. In approving the consolidation of Univision and Hispanic Broadcasting, the FCC ignored product market findings by the Department of Justice as well as its own policy precedent, which includes numerous exceptions for Spanish programming to promote content and ownership diversity. Consistent with the FCC's mandate to protect the public interest, a demand-side analysis is undertaken, positioning the audience as consumer. Industry evidence, product market thresholds, and ownership rules are applied to United States v. Univision, Inc. and Hispanic Broadcasting, with the conclusion that a separate product market must exist for Spanish language broadcast media.     

Population and income: Is there a puzzle?

Abstract

This note presents wide evidence on the relationship between population and income for 125 countries for which data was available for the period 1950–2000. The main result is that there is a weak but negative relationship between population growth and per capita GDP, as income increases population expands at a slower rate. This relationship appears to be stronger for African countries and for Asian countries before 1970.     

Compensating the Victims of Human Rights Abuses in the German Democratic Republic: The Struggle for Recognition

This article examines the evolution of the compensation legislation for victims of human rights abuses in the former German Democratic Republic, and considers the reasons for the continuing dissatisfaction among victims' organisations following the most recent significant revision of the relevant laws in 2007. It charts political debates about adequate compensation for the victims and compares these discourses with the positions of the victims' organisations, demonstrating the ways in which party politics both influenced victims' perception of their own situation and raised expectations of a ‘recognition’ (Axel Honneth) of the victims in German society which has yet to be achieved. The article argues that, despite apparent agreement, the agendas of politicians and victims' organisations were ultimately incompatible.     

Notes on contributors

This paper examines the impact of development, including the impact of government and donor programmes, on ethnic minorities and indigenous peoples in Southeast Asia. Through an examination of government policy, it considers arguments that mainstream development strategies tend to generate conflicts between states and ethnic minorities and that such strategies are, at times, ethnocidal in their destructive effects on the latter. In looking at more recent government policy in the region, it considers the concept of ethno-development (ie development policies that are sensitive to the needs of ethnic minorities and indigenous peoples and where possible controlled by them), and assesses the extent to which such a pattern of development is emerging in the region. Since the late 1980s, it argues, governments across the region have made greater efforts to acknowledge the distinct identities of both ethnic minorities and indigenous peoples, while donors have begun to fund projects to address their needs. In many cases, these initiatives have brought tangible benefits to the groups concerned. Yet in other respects progress to date has been modest and ethnodevelopment, the paper argues, remains confined to a limited number of initiatives in the context of a broader pattern of disadvantage and domination.     

The PIRA,D-Company,and the Crime-Terror Nexus

This article compares and contrasts the Provisional Irish Republican Army (PIRA) and D-Company, two seemingly dissimilar organisations that nonetheless share some striking commonalities, especially in regards to the use of tactics that contradict their declared ideology in pursuit of a larger goal. First, the growing relationship between organised criminal syndicates and terror groups is discussed and Makarenko's well-known “Crime-Terror Continuum” introduced. Following this, a historical overview and an analysis of the organisational structure of the PIRA is provided and organisational models proposed. Further, the founding and development of D-Company is addressed in addition to the syndicate's intricate involvement in the 1993 Bombay Blasts. Similarly, organisational models are offered and conclusions drawn. This work then moves to a comparative analysis of the organisational and operating structure of the PIRA and D-Company and finishes with a brief conclusion. This article argues that although criminal syndicates and militant groups may have different organisation structures, the line that distinguishes their activities has begun to blur and the space between Makarenko's graduated levels is becoming smaller and less discernible, thus rendering her model obsolete.     

Review article

Towards a Post‐Fordist Welfare State? Edited by Roger Burrows and Brian Loader. London, Routledge, 1994. Pp.263. £35.00 hb, £13.99 pb.