Multiple lenders and corporate distress: evidence on debt restructuring : [Version Juni 2006]

In the recent theoretical literature on lending risk, the coordination problem in multi-creditor relationships have been analyzed extensively. We address this topic empirically, relying on a unique panel data set that includes detailed credit-file information on distressed lending relationships in Germany. In particular, it includes information on creditor pools, a legal institution aiming at coordinating lender interests in borrower distress. We report three major findings. First, the existence of creditor pools increases the probability of workout success. Second, the results are consistent with coordination costs being positively related to pool size. Third, major determinants of pool formation are found to be the number of banks, the distribution of lending shares, and the severity of the distress shock

Hold-up in multiple banking: evidence from SME lending

This paper analyzes loan pricing when there is multiple banking and borrower distress. Using a unique data set on SME lending collected from major German banks, we can instrument for effective coordination between lenders, carrying out a panel estimation. The analysis allows to distinguish between rents that accrue due to single bank lending, rents that accrue due to relationship lending, and rents that accrue due to the elimination of competition among multiple lenders. We find the relationship lending to have no discernible impact on loan spreads, while both single lending and coordinated multiple lending significantly increase the spread. Thus, contrary to predictions in the literature, multiple lending does not insure the borrower against hold-up. JEL Classification: D74, G21, G33, G3

Corporate debt restructuring : evidence on lender coordination in financial distress

In the recent theoretical literature on lending risk, the coordination problem in multi-creditor relationships have been analyzed extensively. We address this topic empirically, relying on a unique panel data set that includes detailed credit-file information on distressed lending relationships in Germany. In particular, it includes information on creditor pools, a legal institution aiming at coordinating lender interests in borrower distress. We report three major findings. First, the existence of creditor pools increases the probability of workout success. Second, the results are consistent with coordination costs being positively related to pool size. Third, major determinants of pool formation are found to be the number of banks, the distribution of lending shares, and the severity of the distress shock

Information production in credit relationships : on the role of internal ratings in commercial banking

This paper discusses the role of internal corporate ratings as a means by which commercial banks condense their informational advantage and preserve it vis-à-vis a competitive lending market. In drawing on a unique data set collected from leading universal banks in Germany, we are able to evaluate the extent to which non-public information determines corporate ratings. As a point of departure, the paper describes a sample of rating systems currently in use, and points at methodological differences between them. Relying on a probit analysis, we are able to show that the set of qualitative, or soft, factors is not simply redundant with respect to publicly available accounting data. Rather, qualitative information tends to be decisive in at least one third of cases. It tends to improve the firms' overall corporate rating. In the case of conflicting rating changes, i.e. when qualitative and quantitative rating changes have opposing signs, quantitative criteria dominate the overall rating change. Furthermore, the more restrictive the weighting scheme as part of the rating methodology is, the stronger is the impact of qualitative information on the firms' overall rating. The implications of our results underline the need to define stringent rating standards, from both a risk management and a regulatory point of view. Revised edition published in: ZEW Wirtschaftsanalysen 2001, Bd 54, Baden-Baden, Nomo

Die Verhandlungsmacht von Arbeiter*innen und Gewerkschaften in landwirtschaftlichen Transformationsprozessen: Eine Analyse des Zuckerrohrsektors im Bundesstaat São Paulo

Seit den 1980er Jahren lässt sich weltweit eine neoliberale Restrukturierung der Landwirtschaft beobachten. Die Kontrolle über, der Zugang zu und die Nutzung von Land änderten sich zugunsten eines agrarindustriellen Modells der Landwirtschaft. Wenig bekannt ist, wie sich diese Transformation auf Arbeit und die Verhandlungsmacht von Arbeiter*innen und Gewerkschaften auswirkt. In diesem Working Paper wird dieser Frage anhand der Transformation des Zuckerrohrsektors im Bundesstaat São Paulo (Brasilien) ab 2002 nachgegangen. Der Sektor ist zunehmend von einer Internationalisierung, Konzentration und Expansion der Produktion sowie der Mechanisierung der Zuckerrohrernte gekennzeichnet. Den theoretischen Rahmen bildet der Machtressourcenansatz. Die Transformation des Sektors führte zu erhöhter Arbeitslosigkeit, neuen Formen der Kontrolle, einer Fragmentierung von Arbeiter*innen und internen Konflikten zwischen Gewerkschaften, was das Handlungsvermögen aller Arbeiter*innen und Gewerkschaften schwächte. Die Analyse zeigt allerdings auch, dass die Mechanisierung der Zuckerrohrernte die Verhandlungsmacht von Arbeiter*innen und Gewerkschaften nicht einheitlich schwächte; Maschinenfahrer*innen und Transportgewerkschaften konnten neue Machtressourcen erschließen.Since the 1980s a neoliberal transformation of agriculture can be observed worldwide. The control over, the access to and the use of land have been shifted towards an agroindustrial model of production. In the debate related to this transformation, its effects on labor are mostly excluded. In response to this gap this paper focuses on labor, unions and their bargaining power in processes of changing land control and land use. I analyze the effects of the transformation of the sugarcane sector in the state of São Paulo (Brazil) since 2002. The transformation is marked by an internationalization, concentration and expansion of sugarcane production and foremost the mechanization of the harvest. Theoretically the analysis is based on the power resource approach. The transformation of the production process and the labor regime influenced the bargaining power of workers differently depending on the affiliation to the group of manual or mechanized workers. As well, rural unions were affected differently than transport unions by the transformation of the sector. Overall, however, these processes led to increased unemployment, new forms of control, a fragmentation of workers and to internal conflicts within unions, which weakened all workers, unions and labor struggles in the sector

Ursachen, Auswirkungen, Widerstand

Seit 2006 kaufen kapitalstarke Investoren aus verschiedenen wirtschaftlichen Bereichen landwirtschaftliche Betriebe und Landflächen in Ostdeutschland. Dieses Phänomen lässt sich als land grabbing beschreiben. Seine Ursachen sind staatliche Anreize wie die Privatisierung von Landflächen, Agrarsubventionen und Förderungen für erneuerbare Energien. Auch die historisch gewachsene Agrarstruktur mit vielen großen Betrieben sowie die Wirtschafts- und Finanzkrise von 2007/08 sind wichtige Einflussfaktoren, die das Phänomen begünstigen. Land grabbing in Ostdeutschland hat zur Folge, dass Landpreise und der Wettbewerb um Agrarland sowie die Konzentration des Landbesitzes steigen. Dagegen bildet sich Widerstand von kleineren und mittleren Landwirt_innen, Junglandwirt_innen sowie deren Verbänden. Hauptsächlich aufgrund persönlicher Verflechtungen zwischen großen landwirtschaftlichen Betrieben, Parteien und den Landesbauernverbänden sowie der Macht des Deutschen Bauernverbandes generell ignorieren staatliche Akteure diesen Protest größtenteils.Since 2006 investors of different sectors have invested increasingly in farms and land in Eastern Germany. This phenomenon can be described as land grabbing. The causes of land grabbing are state policies like the privatization of land, agrarian subsidies and the promotion of renewable energies. Furthermore, the historically grown structures with predominantly large farms and crises like the financial crisis are important factors that foster the phenomenon. Land grabbing in Eastern Germany has impacts on land markets. Prices and competition for land, and the land concentration have risen. Land grabbing in Eastern Germany has provoked resistance by young, small and middle farmers, and their organisations. Though, the resistance and their claims have been mainly ignored by state actors mainly due to personal linkages between the owners of large farms, political parties and the “German Farmers´ Association“

Agricultural workers and trade unions in the neoliberal food regime: capital–labour relations, conflicts over labour and the agroindustrial transformation of the sugarcane sector in São Paulo

In the academic and political debate about land grabbing and agroindustrial transformations in the neoliberal food regime effects on labour are neglected. In response to this gap, this paper focuses on labour, unions, their bargaining power and struggles in these transformation processes. Empirically, I analyse the effects of the transformation of the sugarcane sector in the state of São Paulo between 2002 and 2016 by applying the power resource approach. The analysis shows that these processes had mainly negative effects on the rural working class such as increased unemployment, a loss of associational power or less collective struggles; new power resources could not compensate for this.Dans le débat académique et politique lié aux transformations agro-industrielles dans le ‘food regime’ néolibéral, les effets sur travail sont généralement exclus. En réponse à cette lacune, cet article se concentre sur le travail, les syndicats, leur pouvoir de négociation et leurs luttes dans ces processus de transformation. Empiriquement, j'analyse les effets de la transformation du secteur de la canne à sucre dans l'État de São Paulo entre 2002 et 2016 en appliquant l'approche par les ressources de pouvoir. L'analyse montre que ces processus ont eu principalement des effets négatifs sur la classe ouvrière rurale tels que l'augmentation du chômage, une perte de pouvoir associatif ou moins de luttes collectives; les nouvelles ressources de pouvoir n'ont pas pu compenser cela

A symptomatic sesamoid bone in the popliteus muscle (cyamella)

Sesamoid bones of the popliteus muscle, also called cyamellae, are common in primates but rare in humans. They reside as accessory bones in the tendon itself or in the intersection between tendon and bone. They should be clearly distinguished from osteochondral flakes, periosseuos calcifications, osteophytes and the fabella, a common sesamoid bone of the knee. In this case, we report a 25-year-old male with posterior lateral knee pain related to the popliteus tendon where a corresponding cyamella could be demonstrated on X-rays and MRI scans. The clinical findings may be related to the cyamella. Diagnosis and treatment of this rare pathology are discusse

Multiple lenders and corporate distress: Evidence on debt restructuring

In the recent theoretical literature on lending risk, the coordination problem in multi-creditor relationships have been analyzed extensively. We address this topic empirically, relying on a unique panel data set that includes detailed credit-file information on distressed lending relationships in Germany. In particular, it includes information on creditor pools, a legal institution aiming at coordinating lender interests in borrower distress. We report three major findings. First, the existence of creditor pools increases the probability of workout success. Second, the results are consistent with coordination costs being positively related to pool size. Third, major determinants of pool formation are found to be the number of banks, the distribution of lending shares, and the severity of the distress shock

Information production in credit relationship: On the role of internal ratings in commercial banking

This paper discusses the role of internal corporate ratings as a means by which commercial banks condense their informational advantage and preserve it vis-à-vis a competitive lending market. In drawing on a unique data set collected from leading universal banks in Germany, we are able to evaluate the extent to which non-public information determines corporate ratings. As a point of departure, the paper describes a sample of rating systems currently in use, and points at methodological differences between them. Relying on a probit analysis, we are able to show that the set of qualitative, or soft, factors is not simply redundant with respect to publicly available accounting data. Rather, qualitative information tends to be decisive in at least one third of cases. It tends to improve the firms' overall corporate rating. In the case of conflicting rating changes, i.e. when qualitative and quantitative rating changes have opposing signs, quantitative criteria dominate the overall rating change. Furthermore, the more restrictive the weighting scheme as part of the rating methodology is, the stronger is the impact of qualitative information on the firms' overall rating. The implications of our results underline the need to define stringent rating standards, from both a risk management and a regulatory point of view