Corporate Rescue And Game Analysis: A Study On Legal System Of Turnaround Financing

The dissertation is based on such a fundamental proposition that the turnaround financing in corporate bankruptcy reorganization is so important and complicated as to be considered the factors altogether. In the history, legal systems, culture philosophy and interests are of the greatest power on the turnaround financing. Nowadays, more and more entities come into the corporate reorganization process. They should make good cooperation each other to get new money and rescue the corporate. The turnaround financing legal system comes from the practice and influences the practice. It’s named by a bunch of legislations and regulations. Judicial judgment plays an effective role during the financing process.I take about twenty cases of corporate reorganization for example in the dissertation, look into the statute law of several countries, induce deduction and make comparison. I find that there are four men and four ways to get the new money in the corporate reorganization. The four men are the debtors, creditors, shareholders and investors. They either get benefit or are restrained in the reorganization game. Rights and obligations are the focus of the game. The four ways are liability model, equity model, mixed model and assets model. The rights of priority, position, sequence and control are of the most important. The choice of the financing models is depended on the market, legal system and the government. Besides, court is significant. Judicial judgment can bring us a great value. The financing plan and reorganization plan are all needed to get approval from the court. The turnaround financing is a business. But it is not only a contract between you and me; it is enforcement from the court. The government of the corporate, the duties of the managers are both under the provisions of it. Finally, we also need a look into the special entities, legislations and regulations related and the legal responsibilities in reorganizations. They are not the main content in this dissertation, but they are very important. Listed companies, state-owned enterprise, small and medium-sized enterprise and financial institutions are all of difference. Financial law, tax law and accounting law effect too much. Any fault made, you will face the legal responsibilities.According to the research way aforementioned, the dissertation is composed of five chapters. Chapter one focuses on the history of turnaround financing. Chapter two is concerning the relationship of the financing entities. Chapter three is on the ways of getting new money. Chapter four relates the role of bankruptcy court. Chapter five makes a brief comment on the other legislations.