The Danish market for property investors has gone through a period of Significant price changes. These negative changes in the price for real estate have been the reason for a large number of bankruptcies for property investors. What courses these price changes and what can a creditor do when a property investor no longer can pay his dept? These, often large, bankruptcies have been the course of significant looses of a series of credit lenders. How can these credit lenders make more value regarding the inability of dept payment, taking into account the new law regarding reconstruction and existing bankruptcy law? These are the topics of this paper. The paper discus the economic reality of a property investor, within a cradle to grave scope and the possibility of adding value to the company, by using the current reconstruction and bankruptcy laws. Some of the key points is, the dividing of the company's economic reality into three separate groups, revenue, value growth and the macroeconomic fluctuations of the general economy. This leads to a conclusion of the importants of a stabil revenue dispite of the macroeconomic fluctuations. This also the case if the company ends in bankruptcy and the question here will be how to sell the assets. Should this be done quickly or is it better to wait and " play" the economic fluctuations in hope of getting a better dividend, at the end. It will no matter what, be a factor that should be taken into account.
|MSc in Commercial Law, (Graduate Programme) Final Thesis
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