AN ANALYSIS ON THE RECONSTRUCTION OF BANK DEBTS OF FINANCIALLY DISTRESSED FIRMS

Year 2019, Volume: 24 Issue: 2, 299 - 310, 30.04.2019

Selçuk Kaplan Ebru Nurcan Can Deniz Köksal

Abstract

Our study is aimed to determine the profile of the firms that successfully restructured their debts in banks. The complexity of the financial distress and the contribution of the bank to the structuring were examined with the financial profile of the 28 firms, 13 of which were successful and 15 of which had failed debt restructuring. It was found that the firms which have ability to provide funding from the banking system and having with relatively high debt level had a high chance of successful debt restructuring in our discrimination model. Our study has reached the findings that the bank's contribution is important in the problematic debt restructuring.

Keywords

Financial Distress, Financial Restructuring, Dept Restructuring, Financial Failure

FİNANSAL AÇIDAN SIKINTILI FİRMALARIN BANKALARA OLAN BORÇLARININ YENİDEN YAPILANDIRILMASI ÜZERİNE BİR ANALİZ

Abstract

Çalışmamız, bankalardaki sıkıntılı kredi borçlarını başarılı bir şekilde yapılandıran firmaların profilini belirlemeye yöneliktir. 13 adedi başarılı, 15 adedi başarısız borç yapılanması yapmış toplam 28 firmanın, yapılanma öncesi finansal profiliyle, finansal sıkıntının karmaşıklığı ve bankanın yapılanmaya katkısı irdelenmiştir. Oluşturulan diskriminant (ayrıştırma) modelde bankacılık sisteminden fon sağlama yeteneği ve nispeten borç düzeyi yüksek firmaların başarılı borç yapılanması yapma ihtimalinin yüksek olduğu bulunmuştur. Çalışmamız, sıkıntılı borç yapılanmasında bankanın katkısının önemli olduğuna işaret eden bulgulara ulaşmıştır.

Keywords

Finansal Sıkıntı, Finansal Yapılandırma, Borç Yapılandırması, Finansal Başarısızlık

References

• ALDERSON, M. and BETKER,B. (1999). “Assessing Post-Bankruptcy Performance: An Analysis of Reorganized Firms’ Cash Flow”, Financial Management, 28(2): 68-82.
• ALTMAN,E., KANT,T., RATTANARUGENYOT (2009). “Post-Chapter Bankruptcy:Avoiding Chapter22”, Journal of Finance, 21(3): 53-64.
• ANDRADE, G. and KAPLAN, S. (1998). “How costly is Financial (Not Economic) Distress? Evidence from Highly Leveraged Transactions that Became Distressed”, The Journal of Finance, 53(5):1443-1493.
• ASQUIT, P., GERTNER, R., SCHARFSTEIN, D. (1991). “Anatomy of Financial Distress: An Examination of Junk Issuers”, NBER, Working Paper, 3942.
• BETKER, B.L. (1997). “The Administrative Costs of Dept Restructurings: Some Recet Evidence”, Financial Management, 26(4): 56-68.
• BRIGHAM, E.F. and GAPENSKI, L.C. (1994), “Financial Management Theory and Practice”, Orlonda: The Dryden Press, 24(2): 57-75.
• BROWN, D., JAMES C., and MOORADIAN, R. (1993). “The Information Content of Restructuring Involving Public and Private dept Claims”, Journal of Financial, 33: 39-118 .
• COPELAND, T. and WESTON, J.F. (1986). “Managerial Finance”, Orlando, Florida: The Dryden Press.
• FRANKS, J. and TOROUS, W. (1994). “A Comparison of Financial Recontracting in Distressed Exchanges and Chapter 11 Reorganization”, Journal of Financial Economicis, 35: 349-370.
• GILSON, C., KOSE, J., LANG, L. (1990). “Troubled Dept Restructuring: An Emprical Study of Private Reorganazation of Firms in Default”, Journal of Financial Economics, 27: 315-353.
• GILSON, C. (1997). “Transaction Costs and Capital Structure Choice: Evidence from Financially Distressed Firms”, The Journal of Finance. 52(1): 161-196.
• JAMES, C. (1996). “Bank Dept Restructuring and the Composition of Exchange Offers in Financial Distress”, The Journal of Finance, 51(2): 711-727.
• MOORADIAN, R. (1994). “The Effect of Bankruptcy Protection on Investment: Chapter 11 as a Screening Device”, The Journal of Finance, 49(3): 1403-1430.
• OFEK, E. (1993).“Capital Structure and Firm Response to Poor Performance: An Emprical Analysis”, Journal of Financial Economics. 34: 3-30.