Inside Debt Financing

Debt finance raised from corporate insiders has attracted the attention of legal scholars over the past several years. Such an interest comes as no surprise. The variety of legal treatments reserved for insider loans across Europe, the United States and in other jurisdictions attests to an intriguin...

Full description

Saved in:
Bibliographic Details
Main Author: POMELLI, ALESSANDRO
Format: Online
Language:English
Published: FrancoAngeli 2023
Subjects:
Online Access:https://library.oapen.org/handle/20.500.12657/62231
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1869514981862539264
author POMELLI, ALESSANDRO
author_browse POMELLI, ALESSANDRO
author_facet POMELLI, ALESSANDRO
author_sort POMELLI, ALESSANDRO
collection Directory of Open Access Books
description Debt finance raised from corporate insiders has attracted the attention of legal scholars over the past several years. Such an interest comes as no surprise. The variety of legal treatments reserved for insider loans across Europe, the United States and in other jurisdictions attests to an intriguing absence of any regulatory uniformity despite similar financing patterns. After reviewing the literature on the benefits and costs of inside debt financing and illustrating the diverse regulatory approaches adopted by prominent jurisdictions, the book reassesses the risk of opportunistic insider lending based on the state of a company’s finances. In doing so, the book sheds light on the net costs associated with financially sound firms issuing senior debt, whether secured or unsecured, to their insiders and, by contrast, the net benefits of allowing insiders to make senior unsecured loans to firms that are in or near insolvency. Following the reexamination of the benefits and costs of insider lending, novel requirements are recommended for an efficient and fair legal response to inside debt as a source of funding for both solvent firms and financially-distressed ones.
format Online
id doab-20.500.12854ir-99300
institution Directory of Open Access Books
language eng
publishDate 2023
publishDateRange 2023
publishDateSort 2023
publisher FrancoAngeli
publisherStr FrancoAngeli
record_format ojs
spelling doab-20.500.12854ir-993002025-07-17T12:15:22Z Inside Debt Financing POMELLI, ALESSANDRO Insiders, Debt, Equity, Loans, Bankruptcy, Subordination thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law Debt finance raised from corporate insiders has attracted the attention of legal scholars over the past several years. Such an interest comes as no surprise. The variety of legal treatments reserved for insider loans across Europe, the United States and in other jurisdictions attests to an intriguing absence of any regulatory uniformity despite similar financing patterns. After reviewing the literature on the benefits and costs of inside debt financing and illustrating the diverse regulatory approaches adopted by prominent jurisdictions, the book reassesses the risk of opportunistic insider lending based on the state of a company’s finances. In doing so, the book sheds light on the net costs associated with financially sound firms issuing senior debt, whether secured or unsecured, to their insiders and, by contrast, the net benefits of allowing insiders to make senior unsecured loans to firms that are in or near insolvency. Following the reexamination of the benefits and costs of insider lending, novel requirements are recommended for an efficient and fair legal response to inside debt as a source of funding for both solvent firms and financially-distressed ones. 2023-04-18T10:29:18Z 2023-04-18T10:29:18Z 2023-03-31T12:17:53Z 2023 book https://library.oapen.org/handle/20.500.12657/62231 https://directory.doabooks.org/handle/20.500.12854/99300 eng Collana del Dipartimento di Sociologia e Diritto dell’Economia Università di Bologna open access image/jpeg image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/20.500.12657/62231/1/9788835150800.pdf https://library.oapen.org/bitstream/20.500.12657/62231/1/9788835150800.pdf FrancoAngeli 3b1e4403-b637-4268-a952-2280e4500b8a 197 Milan open access
spellingShingle Insiders, Debt, Equity, Loans, Bankruptcy, Subordination
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law
POMELLI, ALESSANDRO
Inside Debt Financing
title Inside Debt Financing
title_full Inside Debt Financing
title_fullStr Inside Debt Financing
title_full_unstemmed Inside Debt Financing
title_short Inside Debt Financing
title_sort inside debt financing
topic Insiders, Debt, Equity, Loans, Bankruptcy, Subordination
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law
topic_facet Insiders, Debt, Equity, Loans, Bankruptcy, Subordination
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNP Financial law: general::LNPC Bankruptcy and insolvency
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCB Commercial law
url https://library.oapen.org/handle/20.500.12657/62231
work_keys_str_mv AT pomellialessandro insidedebtfinancing