What the indicators measure
Time required to recover debt (years)
- Measured in calendar years
- Appeals and requests for extension are included
Cost required to recover debt (% of debtor’s estate)
- Measured as percentage of estate value
- Court fees
- Fees of insolvency administrators
- Lawyers’ fees
- Assessors’ and auctioneers’ fees
- Other related fees
Outcome
- Whether business continues operating as a going concern or business assets are sold piecemeal
Recovery rate for creditors
- Measures the cents on the dollar recovered by secured creditors
- Outcome for the business (survival or not) determines the maximum value that can be recovered
- Official costs of the insolvency proceedings are deducted
- Depreciation of furniture is taken into account
- Present value of debt recovered
Strength of insolvency framework index (0- 16)
- Sum of the scores of four component indices:
- Commencement of proceedings index (0-3)
- Management of debtor’s assets index (0-6)
- Reorganization proceedings index (0-3)
- Creditor participation index (0-4)