RECOVERY OF COMPANY MANAGEMENT IN THE POST-CRISIS STAGE – OPPORTUNITIES AND LEGAL MODELSJournal: Journal Association 1901 SEPIKE (Vol.1, No. 13)
Publication Date: 2016-06-30
Authors : Tzveta Zafirova Margarita Yordanova;
Page : 135-138
Keywords : crisis; bankruptcy; insolvency; reorganization; liquidation;
Our article is an interdisciplinary research and study focused on the issues of recovery of companies with financial difficulties from management and legal point of view. The company viability preservation is the main objective determining the adoption of adequate legislation depending on the national specific features. In research authors prove that several basic concepts of the crisis life cycle exist. They differ in whether they cover the crisis situation itself or/and a period preceding it (the symptoms) and following it (a crisis prevention system). The basic and most common concept, as well as its modifications; in literature sources of this concept are presented by Coombs: pre-crisis stage – crisis stage – post-crisis stage. It constitutes a basis for developing sub-stages depending on the particular crisis situation and determined by its form of expression, scale and duration. Negative options in the last stage do not exist in some crisis life cycle concepts as a common phenomenon, i.e. they are considered as a positive outcome of the crisis situation. The crisis life cycle stages have identified a base for any crisis management models and most of them have been developed by the abovementioned scientists, e.g. Fink, Mitroff, Coombs, etc. The study of research papers of various scientists in companies' crisis management, legal environment and crisis practice in some countries shows a tendency in the development of regulatory systems in various legislations to the application of a recovery (rehabilitation) procedure rather than a liquidation one, aiming at their solvency recovery.
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