ERM Quarterly, Quarter 4, January 2015

In this issue: • Restructuring support measures in focus: Public employment incentives • Russian sanctions and company restructuring • Case in focus: Lloyd’s Banking Group (UK

ERM Quarterly, Quarter 3, October 2016

In this issue • Support instruments in focus: innovative business transfer measures • Case in focus: Major overhaul in Polish mining sector • Case in focus: Planned Caterpillar closure at Gosselie

ERM Quarterly, Quarter 1, April 2015

In this issue • Restructuring support measures in focus: Supporting access to finance • Case in focus: Job creation at Deutsche Post DHL • Sector in focus: Job loss at Poczta Polsk

Organized Labor and Restructuring: Coal Mines in the Czech Republic and Romania

We examine the role of organized labor in the restructuring experience of two coal mining regions in the 1990’s: Ostrava in the Czech Republic and the Jiu Valley region in Romania. Under similar external circumstances, the Ostrava region undertook gradual restructuring from early on whereas in Jiu Valley there was no restructuring until 1997, followed by massive layoffs over two years. We conduct a quantitative exercise that accounts for the mine productivity, the labor market conditions, and the constraints in compensating the laid-off miners. We show that the delay in restructuring in Jiu Valley was inefficient: gradual restructuring with compensation would have benefited both the miners and the government. The proximate reason for the delay was the Jiu Valley miners’ action against restructuring. We interpret their action in part as a behavioral pattern under a perceived threat to their livelihood. This accords with their history of militancy in contrast to Ostravian miners.http://deepblue.lib.umich.edu/bitstream/2027.42/40159/3/wp773.pd

The capital structure of banks and practice of bank restructuring : eight case studies on current bank restructurings in Europe ; final report

This study presents an empirical analysis of capital and liability management in eight cases of bank restructurings and resolutions from eight different European countries. It can be read as a companion piece to an earlier study by the author covering the specific bank restructuring programs of Greece, Spain and Cyprus during 2012/13. The study portrays for each case the timelines between the initial credit event and the (last) restructuring. It proceeds to discuss the capital and liability management activity before restructuring and the restructuring itself, launches an attempt to calibrate the extent of creditor participation as well as expected loss by government, and engages in a counterfactual discussion of what could have been a least cost restructuring approach. Four of the eight cases are resolutions, i.e. the original bank is unwound (Anglo Irish Bank, Amagerbanken, Dexia, Laiki), while the four other banks have de-facto or de-jure become nationalized and are awaiting re-privatization after the restructuring (Deutsche Pfandbriefbank/Hypo Real Estate, Bankia, SNS Reaal, Alpha Bank). The case selection follows considerations of their model character for the European bank restructuring and resolution policy discussion while straddling both the U.S. (2007 - 2010) and the European (2010 - ) legs of the financial crisis, which each saw very different policy responses...

Effects of Restructuring at Regional Level and Approaches to Dealing with the Consequences

While restructuring and structural change are increasingly acknowledged as inherent characteristics of economic development and receive much policy attention at European and Member State level, the topic is rarely discussed from a regional perspective. However, most large-scale restructurings have effects on the regions and employment areas in which they take place. Specific information on the effects of restructuring at regional level and approaches to tackle its potential consequences for the local economy, labour market and society is scarce. This report aims to help close the knowledge gap. Based on secondary data analysis, a literature review and five in-depth case studies, it identifies and discusses the effects of large-scale restructuring outside the firm undergoing restructuring. It also seeks to illustrate success stories of positive regional management directed towards maintaining and improving labour markets following an important restructuring event