Legal Analysis of Corporate Insolvency: A Case Study of the Insolvency Resolution Process
DOI:
https://doi.org/10.46799/ijssr.v3i12.651Keywords:
Legal Analysis, Insolvency, Insolvency Settlement ProcessAbstract
Bankruptcy is a situation that can be experienced by all who run their business, bankruptcy is a debtor who is in an unfavorable state because all his assets are not enough to meet his needs to pay all his debts. So that legal problems arise when a company experiences financial difficulties, in Indonesia bankruptcy law is regulated in Law number 37 of 2004. The purpose of the study is to analyze bankruptcy law, especially the bankruptcy settlement process. The research method used in this study is the descriptive qualitative method. Data collection is carried out through literature studies (library research), then the collected data is analyzed through three stages, namely data reduction, data presentation, and conclusions. The results showed that Law Number 37 of 2004 can provide legal protection to creditors, debtors, and the public fairly and equitably. The bankruptcy settlement process can be carried out through two stages, namely the PKPU stage or postponement of debt payment obligations and the bankruptcy settlement process. The bankruptcy settlement process consists of several stages, namely the first bankruptcy application, the examination of the bankruptcy application, the bankruptcy statement decision, the appointment of a receiver, the distribution of debtor's assets, and then the last stage of the bankruptcy closing decision.
References
Al Kautsar, I., & Muhammad, D. W. (2021). Investigation The Interest Of Creditor And Debtor In Suspension Of Debt Payment Obligations. Jurnal Hukum Bisnis Bonum Commune, 159–170.
Armour, J. (2001). The law and economics of corporate insolvency: A review.
Closset, F., Großmann, C., Kaserer, C., & Urban, D. (2023). Corporate restructuring and creditor power: Evidence from European insolvency law reforms. Journal of Banking & Finance, 149, 106756. https://doi.org/10.1016/J.JBANKFIN.2022.106756
Diza, N., & Wiradirja, I. R. (2018). The Bankruptcy of Personal Guarantor’s Heirs Under Indonesia Legal System. Proceeding 12th ADRI 2017 International Multidisciplinary Conference and Call for Paper, Bogor, March 30–April 01, 2017, 95.
Do, T. K. (2022). Corporate social responsibility and default risk: International evidence. Finance Research Letters, 44. https://doi.org/10.1016/J.FRL.2021.102063
Eidenmüller, H. (2023). Comparative corporate insolvency law.
Elsayed, M., Elshandidy, T., & Ahmed, Y. (2022). Corporate failure in the UK: An examination of corporate governance reforms. International Review of Financial Analysis, 82. https://doi.org/10.1016/J.IRFA.2022.102165
Fauzi, M. (2018). Insolvency within Bankruptcy: The Case in Indonesia. SHS Web of Conferences, 54, 06004. https://doi.org/10.1051/shsconf/20185406004
Goode, R. M. (2011). Principles of corporate insolvency law. Sweet & Maxwell.
Gopalakrishnan, B., & Mohapatra, S. (2020). Insolvency regimes and firms’ default risk under economic uncertainty and shocks. Economic Modelling, 91, 180–197. https://doi.org/10.1016/J.ECONMOD.2020.06.005
Guan, Y., Zhang, L., Zheng, L., & Zou, H. (2021). Managerial liability and corporate innovation: Evidence from a legal shock. Journal of Corporate Finance, 69. https://doi.org/10.1016/J.JCORPFIN.2021.102022
Hennink, M., Hutter, I., & Bailey, A. (2020). Qualitative research methods. Sage.
Hermawan, B. E., Safa’at, R., Sulistyarini, R., & Samudra, H. (2020). Simple Verification Principles in Bankruptcy Procedures in Commercial Court of Indonesia. International Journal of Multicultural and Multireligious Understanding, 7(5), 461–472. https://doi.org/10.18415/ijmmu.v7i5.1700
Karlesta, I. P. (2019). Analisis Hukum Kepailitan Terhadap Holding BUMD.
Kaya, O. (2022). Determinants and consequences of SME insolvency risk during the pandemic. Economic Modelling, 115. https://doi.org/10.1016/J.ECONMOD.2022.105958
Kimani, D., Ullah, S., Kodwani, D., & Akhtar, P. (2021). Analysing corporate governance and accountability practices from an African neo-patrimonialism perspective: Insights from Kenya. Critical Perspectives on Accounting, 78. https://doi.org/10.1016/J.CPA.2020.102260
Kliatskova, T., Savatier, L. B., & Schmidt, M. (2023). Insolvency regimes and cross-border investment decisions. Journal of International Money and Finance, 131. https://doi.org/10.1016/J.JIMONFIN.2022.102795
Li, X., Gupta, J., Bu, Z., & Kannothra, C. G. (2023). Effect of cash flow risk on corporate failures, and the moderating role of earnings management and abnormal compensation. International Review of Financial Analysis, 89. https://doi.org/10.1016/J.IRFA.2023.102762
Olujobi, O. J. (2021). Combating insolvency and business recovery problems in the oil industry: proposal for improvement in Nigeria’s insolvency and bankruptcy legal framework. Heliyon, 7(2). https://doi.org/10.1016/J.HELIYON.2021.E06123
Purba, M., Sunarmi, S., Nasution, B., & Devi, K. (2019). Homologasi Penundaan Kewajiban Pembayaran Utang (PKPU) Sebagai Upaya Preventif Terjadinya Pailit: Studi Putusan Mahkamah Agung No. 137K/Pdt. Sus-PKPU/2014. USU Law Journal, 7(2), 138–148.
Savitri, R., & Santoso, B. (2021). JURIDICAL ANALYSIS OF THE BANKRUPTCY EXECUTION DECISION UNDER INDONESIAN COMMERCIAL COURT. Tadulako Law Review, 6(1), 27–39.
Shubhan, M. H. (2015). Hukum Kepailitan. Prenada Media.
Shubhan, M. H. (2020). Legal protection of solvent companies from bankruptcy abuse in Indonesian legal system. Academic Journal of Interdisciplinary Studies, 9(2), 142–148.
Sihotang, Z. (2021). Duties And Authority Of PKPU Management Basen On Law No. 37 Of 2004 Concerning Bankruptcy And Suspension Debt Payment Obligations. Journal of Law Science, 3(1), 15–24. https://doi.org/10.35335/jls.v3i1.1650
Simaremare, S. P., Nasution, B., & Sunarmic, E. Y. (2021). Reviewing the Comparison of the Legal Bankruptcy System Between Indonesia and the Netherlands. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(6), 2290–2296.
Stef, N., & Bissieux, J. J. (2022). Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France. International Review of Law and Economics, 70. https://doi.org/10.1016/J.IRLE.2022.106063
Syuhada, W. (2023). ANALISIS HUKUM PERUSAHAAN PADA KASUS KEPAILITAN ANAK PERUSAHAAN BADAN USAHA MILIK NEGARA (HOLDING COMPANY). UNES Law Review, 5(4), 2352–2368. https://doi.org/10.31933/unesrev.v5i4.564
Toha, K., & Retnaningsih, S. (2020). Legal policy granting status of fresh start to the individual bankrupt debtor in developing the bankruptcy law in Indonesia. Academic Journal of Interdisciplinary Studies, 9(2), 157–161.
Tolmie, F. (2013). Corporate and personal insolvency law. Routledge.
Widiarini, F. S., & Anggoro, T. (2022). The Role of Balai Harta Peninggalan as Curator in The Management and Settlement of Bankrupt Assets. Legal Brief, 11(2), 964–978.
Yu, H., & Chen, H. (2023). Economic policy uncertainty and green innovation: Does corporate social responsibility matter? Finance Research Letters, 58. https://doi.org/10.1016/J.FRL.2023.104649
Published
Issue
Section
License
Copyright (c) 2023 Warmiyana Zairi Absi, Marsudi Utoyo
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
