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Ease of Doing Business in

United States

United States Download Profile (1994.2KB, pdf)
Region OECD high income
Income Category High income
Population 321,418,820
GNI Per Capita (US$) 54,960
City covered New York City, Los Angeles

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 8 7 down
1
82.45 82.46 down
0.01
Starting a Business 51 45 down
6
91.23 91.22 up
0.01
Dealing with Construction Permits 39 37 down
2
75.74 75.73 up
0.01
Getting Electricity 36 32 down
4
83.39 83.39
-
Registering Property 36 37 up
1
76.80 76.85 down
0.05
Getting Credit 2 2
-
95.00 95.00
-
Protecting Minority Investors 41 39 down
2
64.67 64.67
-
Paying Taxes 36 34 down
2
83.85 83.89 down
0.04
Trading across Borders 35 35
-
92.01 92.01
-
Enforcing Contracts 20 20
-
72.61 72.61
-
Resolving Insolvency 5 4 down
1
89.19 89.20 down
0.01

Viewing the data for

DB 2017 DTF (% points):

89.19

DB 2016 DTF (% points):

89.20

Change in DTF (% points):

down0.01

Indicator New York City OECD high income
Recovery rate (cents on the dollar) info_outline 78.6 73.0
Time (years) info_outline 1.5 1.7
Cost (% of estate) info_outline 10 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 15 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 78.6
    Proceeding As a general rule, unless a debtor believes that restructuring is hopeless, a debtor will likely seek bankruptcy protection. This is particularly true in a case where the chairman or other decision-maker controls and/or owns a large portion of the debtor equity. Moreover, under U.S. bankruptcy law, absent evidence of fraud or gross mismanagement, existing management is permitted to operate the debtor during the bankruptcy and has the first opportunity to file a plan. Mirage would therefore likely file for bankruptcy protection and seek and likely achieve a reorganization. However, there is a chance in the current environment that the case could end in a sale or return of the security (i.e., liquidation after a voluntary filing). reorganization
    Outcome The hotel will continue operating after reorganization. Even if the hotel is sold, it will likely be sold as a going concern, because it would be worth less if it stopped operating. going concern
    Time (in years) A Chapter 11 restructuring may take up to 18 months. Hotel management will file for voluntary reorganization under Chapter 11. At that time, all other proceedings will be automatically stayed. Hotel management will continue operating the hotel under supervision of the US Trustee and a committee of unsecured creditors (appointed by the US Trustee). Unofficial (ad hoc) committees may also be involved. The hotel management will prepare a schedule of assets and liabilities, where it will list all of the known claims against Mirage. The court will then issue an order setting the date for all creditors to submit proof of their claims. If debtor and creditors do not agree on each other's representation of the loan, the issues will be litigated before the court. Once all claims have been confirmed, Mirage will propose a reorganization plan, which must pass "the best interest of the creditors test", so that creditors who vote against the plan receive at least as much as they would have received if the debtor were liquidation. The creditors will vote on the plan and accept it. When the plan becomes effective, the court will enter a final decree closing the case. 1.5
    Cost (% of estate) Major expenses will include attorneys' fees (5%), fees of accountants involved in the restructuring proceedings (3%) and court fees (2%). 10.0
    Answer Score
    Strength of insolvency framework index (0-16) 15.0
    Commencement of proceedings index (0-3) 3.0
    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? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 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) 3.0
    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? Yes 1.0
    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? Yes 1.0
    Creditor participation index (0-4) 3.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    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”.