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HomeBusiness FinanceCorporate Finance Lab: Unlocking Solutions for Curiosity, Problems, and Principles

Corporate Finance Lab: Unlocking Solutions for Curiosity, Problems, and Principles

Entity separateness should not lead to complete isolation of entities within corporate groups, according to Ilya Kokorin. In his book “Intra-Group Financing and Enterprise Group Insolvency: Problems, Principles and Solutions,” Kokorin examines financial arrangements common in enterprise groups and their impact on insolvency and restructuring. He argues that while these arrangements can have benefits such as risk mitigation, they also promote dependence and increase the risk of contagion within the group. Kokorin analyzes commercial practices, case law, and legal tools from the UK, USA, and the Netherlands to develop optimal policy choices. He emphasizes the importance of balancing conflicting legal principles and conducting a proportionality analysis when limiting contractual freedoms. The book is divided into several parts that explore the characteristics of corporate groups, the challenges posed by intra-group financing, and potential solutions for efficient resolution of financial distress within these groups. Kokorin discusses tools such as third-party releases, extension of enforcement stays, and limitations on contractual clauses to address group-specific problems. Overall, the book aims to align insolvency law with the economic reality of group integration while preserving the value and synergies created by these groups.

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