Financing during restructuring

Ralph Kudla

2005

The number of corporate insolvencies in Germany continues at record levels. The consensus-prone financial system, which has traditionally been dominated by banks, is undergoing a radical overhaul as it is being replaced by a market-based system. The financing of crisis-ridden companies is hit particularly hard by these changes, since to date there have hardly been any alternatives to a reorganization loan by a bank. There are, however, new players on the market offering innovative solutions.

In his thesis "Financing during restructuring. Innovative solutions for crisis-ridden companies" Ralph Kudla analyzes the financing options of crisis-ridden companies in the light of current developments (integration of international financial markets, value-orientation of financial institutions, Basle II, end of "Deutschland AG"). Taking the specific situation of failing companies into account, he shows efficient approaches to financing. For example, selecting potential investors and taking measures to boost equity in the balance sheet or inject liquidity. Using case studies and extensive interviews with experts, he develops a holistic hands-on approach. He develops recommendations for shareholders, managers, banks and financial investors.