Restructuring of coal mines requires significant budgetary expenditure. A complex scientific approach will facilitate the conduction management costs hard liquidation. An analysis mine’s liquidation was carried out on an annual basis with division for subsequent years course processes. The presented method signalling that has gone beyond structure acceptable values developed 20 operations SRK S...

I present a model in which heterogeneity in financial distress endogenously generates inefficiencies in network formation, creating excessive systemic risk. Financial firms face costly liquidation and strategically trade assets, thereby forming links. A link with a distressed firm can be socially costly as it increases system-wide liquidation risk. When the cross-sectional dispersion of distres...

seminars at Toronto University and ESSEC Business School for useful comments. We gratefully acknowledge financial support of the chair QUANTVALLEY/Risk Foundation: " Quantitative Management Initiative " and the Swiss National Science Foundation through the NCCR FINRISK network. Abstract In this paper we examine the dependence between the liquidation risks of individual hedge funds. This depende...

We study the optimal liquidation strategy for a call spread in the case when the market uses an over-estimated volatility to price options. The problem is formulated as an optimal stopping problem, which we solve explicitly.

This paper examines the reorganization process under Chapter 11 of the U.S. bankruptcy code. Our model considers two classes of creditors and accommodates several features of Chapter 11, including the intervention of the bankruptcy judge. We model the strategic interaction between claimants under Chapter 11 as a costly multiple-stage bargaining process, and solve it in a game theory setting. Us...

This paper investigates the optimal management of a firm faced with a long-term liability that occurs at a random date. Three issues are analysed: the optimal dividend policy; optimal expenditure on safety to delay the occurrence of the liability; and the optimal liquidation date of the firm. An owner faced with dynamic unlimited liability never liquidates and therefore accumulates capital to t...

We study bankruptcy in general equilibrium, taking into account the interactions between the credit and the labor markets, as well as wealth heterogeneity. Soft bankruptcy laws often preclude liquidation, to avoid ex-post inefficiencies. This worsens credit rationing, depresses investment and reduces aggregate leverage. Yet, tough laws do not necessarily maximize social welfare or emerge from t...

We consider the optimal liquidation of a position of stock (long or short) where trading has a temporary market impact on the price. The aim is to minimize both the mean and variance of the order slippage with respect to a benchmark given by the market VWAP (volume weighted average price). In this setting, we introduce a new model for the relative volume curve which allows simultaneously for ac...

In 1993, National Car Rental faced liquidation. General Motors Corporation (National's parent) took a $744 million charge against earnings related to its ownership of National Car Rental Systems. National faced liquidation, with the loss of 7,500 jobs, unless it could show a profit in the short term. National initiated a comprehensive revenue management program whose core is a suite of analytic...