When companies face financial trouble, potential job losses can be a major risk for people and—depending on the size of the company or industry in trouble—a risk to local or national economies. An efficient insolvency system can mitigate this risk while contributing to the creation of more and better jobs. As jobs are the most critical tool in fighting poverty, a better understanding of the effects of insolvency law on employment is vital for development work.
Preserving Jobs by Helping Distressed Firms Get Back on Track
A key function of insolvency law is facilitating the reorganization of viable but financially distressed companies. By allowing such firms to restructure their debts and operations, insolvency law helps…