Thorburn on the new restructuring law to save businesses


30 April 2020 16:22

(updated: 18 May 2020 10:23)

Thorburn on the new restructuring law to save businesses

The Norwegian Parliament recently approved a temporary new restructuring law to save businesses following the corona crisis. NHH Finance Professor Karin S Thorburn explains some reasons for and risks connected to the new law.

On 28 April, the Norwegian Parliament approved a temporary law for company reorganization aimed at saving Norwegian otherwise healthy businesses that struggle with poor profitability and illiquidity following the corona crises.

The existing bankruptcy code forces companies to close down their operations, potentially harming the recovery of the Norwegian economy from the crisis.

In the video above Professor Karin S Thorburn from NHH’s Department of Finance explains some factors surrounding the temporary law, and some risks and challenges it may carry with it.

Updated 18 May 2020:

Professor Thorburn elaborated on the topic in a webinar hosted by NHH Alumni 7 May.

The Webinar discussed key features of a well-functioning bankruptcy law and review how the current bankruptcy law and the new restructuring law measure up again these principles.

Watch a video from the webinar (the content is in Swedish/Norwegian):