Unit:
Κατεύθυνση Στρατηγικού ΜάνατζμεντLibrary of the Faculty of Economics and of the Faculty of Business Administration
Author:
Hatzisavvidou Anastasia-Souzanna
HATZISAVVIDOU ANASTASIA-SOUZANNA
Supervisors info:
Δημήτριος Βασιλείου, Καθηγητής ,Τμήμα Οικονομικών Επιστημών, Εθνικό και Καποδιστριακό Πανεπιστήμιο Αθηνών
Original Title:
Χρεοκοπία ή βιωσιμότητα ; το δίλλημα για επιχειρήσεις που βρίσκονται σε δυσχέρεια οικονομικής θέσης εξαιτίας υψηλού δείκτη δανειακής επιβάρυνσης μελέτη περίπτωσης: ΝUTRIART ABEE
Translated title:
Failure or sustainability? divestiture for businesses in financial distress due to high debt case study: NUTRIART SA
Summary:
The purpose of this paper is to provide an adequate answer to whether an enterprise with a high borrowing burden, where it is in financial difficulty, is to decide the running the firm through the regulatory bankruptcy and liquidation or whether it should continue business with existing or new business model. The case study for the research topic concerns the company NUTRIAT ABEE.
They are presented the reasons for the economic downturn, the reasons why the use of foreign loan capital in the capital structure of companies and the policies aimed at improving the financial situation of a company with high financial leverage are presented in the first place. Business bankruptcy due to economic downturns can be predicted ex ante according to a variety of bankruptcy and sustainability forecasting models, both from the internal financial management procedures by the borrower, also and by the lenders (credit rating etc).
However, the question is about what actions are taken by the administration when this strong possibility is likely to be happen, so as to avoid bankruptcy and what are the future expectations of the shareholders when bankruptcy is “one way” and in some cases the most advantageous solution for both, financial institutions that provide “debt which is not being repaid” loans, and for the shareholders who invest significant amount of funds in activities that ex post turn out to be not reciprocate.
Bankruptcy is not a generally acceptable decision because of the social problems that are caused (unemployment, reduction of supply). Nonetheless, bankruptcy is a global phenomenon and EU organizations are trying to focus on the role of corporate governance and the responsibilities of stakeholders directly (controlling authorities, financial institutions, political governance). The new economic environment - during and after the financial crisis - requires effectiveness, efficiency and matching to those companies participating in the "give-and-take 'equity.
Main subject category:
Social, Political and Economic sciences
Keywords:
High Dept, Bankruptcy/Failure, Sustainability, Dilemma
Number of references:
183
