A COMPARISON OF US, UK, AND GERMAN INSOLVENCY CODES

This paper describes three insolvency codes, those of the United Kingd om (UK), Germany, and the United States (US) and compares their effici ency against a number of benchmarks. These codes have been chosen beca use they cover a broad spectrum of debtor- and creditor-oriented insol vency procedures. The paper also compares the plans of distressed firm s' reorganizations both within and outside the formal bankruptcy proce ss, including the size of write downs and creditors' claims and the de viations from absolute priority which have accrued both to equityholde rs and different classes of creditors. Some evidence of the costs of b ankruptcy is also provided for each country.