Text B. General Objectives of Insolvency Procedures

 

8.3.1 Translate the text into Russian in written form using the dictionary

 

Although the insolvency laws of countries differ in important respects, it is possible to identify two general objectives that are shared by most systems. The first general objective is the allocation of insolvency risks among participants in a market economy in a predictable, equal and transparent manner. The achievement of this objective plays a critical role in providing confidence growth for the benefit of all participants. For example, in terms of the creditor-debtor relationship, the ability of a creditor to commence insolvency procedures against a debtor as a means of enforcing its claim reduces the risk of lending and increases the availability of credit and the making of investment more generally. An insolvency law also serves to allocate risk among different creditors and to benefit borrowers. Thus, if the insolvency law allows secured creditors special treatment compared to unsecured creditors such treatment protect the value of security, which may be particularly important for those debtors that, because of their credit risk, cannot obtain unsecured credit.

 

Notes:

- secured credit – кредит, выданный под залоговое обеспечение долга;

- unsecured credit – кредит, выданный без залогового обеспечения долга; доверительный кредит;

- secured creditor - обеспеченный кредитор, имеющий залоговое обеспечение в виде активов заемщика (в случае банкротства заемщика такой кредитор имеет преимущества перед другими кредиторами);

- unsecured creditor – кредитор компании, не имеющий залогового обеспечения долга (требования таких кредиторов в случае ликвидации компании удовлетворяются после требований кредиторов, предоставивших кредиты под определенное обеспечение).

 

Assignments

 

8.4.1 Match English and Russian equivalents

 

1) to differ in important respects;	a) играть решающую роль;
2) market economy;	b) достижение цели;
3) to identify objectives;	c) начать процедуру банкротства;
4) achievement of the objective;	d) важность гарантии;
5) to play a critical role;	e) определить цели;
6) to provide confidence growth;	f) получить необеспеченный залогом кредит;
7) creditor-debtor relationships;	g) отношения кредитора-дебитора;
8) to commence insolvency procedure;	h) принести выгоду заёмщикам;
9) to benefit borrowers;	i) рыночная экономика;
10) to obtain unsecured credit;	j) обеспечить рост доверия;
11) the value of security.	k) отличаться в важных отношениях.

 

8.4.2 Complete the sentences according to the text

 

- An insolvency law also serves… and to benefit borrowers.

- … is the allocation of insolvency risks among participants in a market economy …. in … manner.

- Although the insolvency laws of countries differ in important respects, ….

 

8.4.3 Find the answer to the question

 

- What are the two general objectives of insolvency laws?

8.4.4 Compose three disjunctive questions to the text

 

Text C. Crisis Management and Business Recovery

 

8.5.1 Read the text and find the information about the main idea of the CM role in Business Recovery

 

The business like people is sometimes in poor health. It could be a real test for management shareholders, creditors, lenders, borrowers and other stakeholders of such a business. It is believed the time has come to listen to each other, to think and take the best decisions for all the parties interested in the business. First of all, the status quo should be carefully analyzed and understood by all the parties. Then the future expectations are to be reconciled. As long as you know where you are, the next step comes to the recovery program design. Whatever the reason for a crisis – a drastic drop in sales, cash flow shortage, wrong investment policy or internal management conflict - it is very important for the stakeholders to handle it as one team.

When your business is in trouble it is time to go to those whom you trust. A range of investigative procedures and rescue solutions are to be developed. The parties will be assisted in better understanding the financial and marketing position of the business, the reasons of its poor performance and key business risks associated with its recovery program. In case of a conflict between management and shareholders the latter are guaranteed full support and the best negotiation tactics directed to defend their investments. If the crisis or conflict is so deep that insolvency looks like the only outcome, the parties will be offered the full range of services to preserve their best interests and minimize losses.

Notes:

the latter - последний (из двух названных; противоп. - the former).

Assignments

8.6.1 Find English equivalents for the following Russian word-groups given below:

1) проект программы по оздоровлению;

2) принять самые подходящие решения;

3) нехватка денежных потоков;

4) слабая эффективность;

5) единственный результат;

6) ряд процедур расследования;

7) решения по спасению бизнеса;

8) помочь лучшему пониманию;

9) полный спектр услуг;

10) резкое.

 

8.6.2 Find Russian equivalents for the following English word-groups given below:

 

1) cash flow shortage;

2) rescue solutions;

3) drastic drop in sales;

4) the only outcome;

5) a range of investigative procedures;

6) poor performance;

7) to take the best decisions;

8) recovery program design;

9) the full range of services;

10) to assist in better understanding.

 

8.6.3 Find the sentences in the text which are close in meaning to the following statements

 

- The business resembles human beings in that it is in bad condition from time to time.

- To begin with, the present situation must be properly examined and understood by the interested groups of people.

- When the business is in difficulty it is the moment for you to apply to the people/specialists you have confidence in.

 

8.6.4 Ask your fellow-student the appropriate questions to produce answers:

 

- the recovery program;

- the best decisions for all the parties interested;

- in case of a conflict;

- to minimize losses;

- the time has come.

8.6.5 Translate the following sentences into Russian paying attention to the different meanings of the nouns “ shareholder ” and “ stakeholder ”

 

- Due to the losses the bank has made almost all of its stakeholders will suffer – some staff will lose their jobs, customers will have higher charges and shareholders will see the price of their shares fall.

 

8.6.6 Compose five types of questions (general, alternative, special, disjunctive and a question to the subject) to the following sentence

 

- As long as you know where you are, the next step comes to the recovery program design.

8.6.7 Speak on the main points of the CM role in business recovery

 

Supplementary texts