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Ease of Doing Business in

Norway

Norway Download Profile (1684.8KB, pdf)
Region OECD high income
Income Category High income
Population 5,195,921
GNI Per Capita (US$) 93,820
City covered Oslo

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 6 8 up
2
82.82 82.30 down
0.52
Starting a Business 21 18 down
3
94.30 94.29 up
0.01
Dealing with Construction Permits 43 40 down
3
75.52 75.51 up
0.01
Getting Electricity 12 18 up
6
90.58 87.46 up
3.12
Registering Property 14 14
-
87.26 87.26
-
Getting Credit 75 70 down
5
55.00 55.00
-
Protecting Minority Investors 9 7 down
2
75.00 75.00
-
Paying Taxes 26 28 up
2
85.53 85.52 up
0.01
Trading across Borders 22 22
-
96.97 96.97
-
Enforcing Contracts 4 6 up
2
78.99 77.14 up
1.85
Resolving Insolvency 6 5 down
1
89.06 88.83 up
0.23

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

6

DB 2016 Rank:

5

Change in Rank:

down1

DB 2017 DTF (% points):

89.06

DB 2016 DTF (% points):

88.83

Change in DTF (% points):

up0.23

Indicator Norway OECD high income
Recovery rate (cents on the dollar) info_outline 92.9 73.0
Time (years) info_outline 0.9 1.7
Cost (% of estate) info_outline 1 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 12.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 92.9
    Proceeding BizBank will initiate foreclosure proceedings. Debt negotiation proceedings (Reorganizations) are not common in Norway and BizBank cannot initiate bankruptcy of Mirage, as its debt is secured by assets that can cover 100% of its claim. After BizBank initiates foreclosure proceedings, Mirage management will file for bankruptcy, the court will appoint an administrator and BizBank will have to submit its claims to the administrator, thus joining the bankruptcy proceedings. liquidation
    Outcome The administrator appointed by the court in bankruptcy proceedings will continue operating the business and sell it as a going concern. going concern
    Time (in years) BizBank will petition the court for enforcement of its security interest. Because this will cause Mirage's insolvency, the management of the hotel will initiate bankruptcy proceedings. The court will review the petition, declare Mirage bankrupt, open bankruptcy proceedings and appoint an administrator of the estate. At that time, all creditors, including BizBank, will then submit their claims to the administrator. The administrator will contact the debtor and analyze its financials, including the company's debts, assets, employees, etc. Based on the creditors’ submissions and the debtor’s records, the administrator will prepare a report of findings to be presented at the first meeting of the creditors. The meeting of the creditors will be held, where the administrator will present his report and sale of assets will take place. The proceeds will be divided among creditors, after administrative costs are deducted. 0.9
    Cost (% of estate) Major expenses will include remuneration of the insolvency representative — up to NOK 1,000,000; attorneys' fees — up to NOK 100,000; fees of accountants and assessors involved in the proceedings — up to NOK 120,000; and court fees — up to NOK 30,000. 1.0
    Answer Score
    Strength of insolvency framework index (0-16) 12.5
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 1.0
    Management of debtor's assets index (0-6) 6.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? Yes 1.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary unsecured creditors but not over secured creditors 1.0
    Reorganization proceedings index (0-3) 1.0
    Which creditors vote on the proposed reorganization plan? (b) Only creditors whose rights are affected by the proposed plan 1.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 3.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.