Домашнее чтение Хрестоматия для студентов-бакалавров направления Лингвистика
..pdfAlmost immediately afterwards Heinz started over, introducing a new condiment to the market – tomato ketchup.
Today Heinz is a USD 10 billion global company that sells 650 million bottles of ketchup every year. Other famous people who at some point had to seek for bankruptcy protection are Donald Trump, Lady Gaga, Mike Tyson, Toni Braxton and other celebrities.
3) Retell the text.
Text 3
Bankruptcy fraud.
1)Study the following words and expressions.
1.To land in jail – оказаться в тюрьме
2.A punitive system – карательная система
3.To conceal assets – скрывать активы
4.A fraud – обман, мошенничество
5.A felony – уголовное преступление
6.To file for bankruptcy дать прошение о признании себя банкротом
7.Under bankruptcy laws - по закону о банкротстве
8.An asset - актив
9.Real estate – недвижимость
10.To pay off debts – выплатить долги
11.To be fined for smth – быть оштрафованным за что-то
12.A white collar crime – беловоротничковое преступление мошенничество, уклонение от уплаты налогов,
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коррупция, итд., впервые введен в судебный обиход
1939 году
13.To bribe smb – дать взятку кому-либо
14.Credit card fraud – мошенничество с кредитными картами
15.Identity theft – кража личных данных
16.Mortage fraud - мошенничество с ипотекой
17.Money laundering – отмывание денег
18.Severe punishment – строгое наказание
19.Prison sentence – тюремный приговор
20.Major creditor – главный кредитор
21.The Internal Revenue Service – государственный налоговый орган
22.Per offence – за каждый эпизод
2) Read the text
Sometimes people find themselves in a difficult financial situation.
For example - when they lose their jobs or have problems with their business.
Under bankruptcy laws they have to report all of their assets such as real estate, cars and other valuable things.
All, that can be sold to pay off their debts.
Some people may decide to conceal some of their assets.
This is a bankruptcy fraud which is a felony.
People who do that may be fined or even land in jail.
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It is important to understand that in the USA bankruptcy system helps both the creditors – to get their money back and the debtors – to become financially sound again.
Unfortunately, debtors sometimes conceal assets – if they do not want to sell an item, they just give it to someone to keep for a while.
There are other forms of bankruptcy fraud, such as:
-Making false statements to the court,
-Filing several bankruptcy petitions in different states,
-Purchasing (buying) items on credit (if you do so with the intention of filing for bankruptcy instead of paying for them)
-Bribing your bankruptcy trustee
Sometimes creditors commit fraud as well, when they lie about the money you owe them or the repayments they have already received.
The Department of Justice`s US Trustee`s program is the key player in identifying fraud. When they suspect bankruptcy fraud they pass on information to the FBI which starts to gather evidence, reviewing financial documents and interviewing people.
The Internal Revenue Service also tries to identify bankruptcy fraud cases as it is often the major creditor when someone files.
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Bankruptcy fraud can be disclosed when other crimes such as credit card fraud, identity theft, mortage fraud or money laundering are investigated.
People who commit bankruptcy fraud usually get severe punishments they face a federal prison sentence of up to 5 years and a fine up to 250.000 $ per offence.
3) Retell the text.
Text 4
Bankruptcy alternatives in the UK
1) Study the following words and expressions.
1.To resolve debt issues – решить проблему с долгами
2.Administration order – административное постановление
3.Outstanding debts – непогашенные задолженности
4.Late payment fees – плата за просрочку платежей
5.Debt consolidation – консолидация
(реструктуризация) долга
6.To damage credit rating – портить кредитный рейтинг
7.Credit score =credit rating
8.To fall behind on payments – задерживать платежи
9.To have a steady rate of income - иметь стабильный доход
10.Debt management plan – план управления долгом
11.Disposable income – располагаемые средства
12.A liaison – посредник
13.Voluntary agreements – добровольные соглашения
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14.An insolvency practitioner – специалист по вопросам финансовой несостоятельности
15.The term of the loan – срок кредитования
16.To be compelled to abide by the terms – быть вынужденным согласиться на условия
17.Lenders = creditors
2) Read the text.
There are many circumstances that may lead to financial difficulties.
In some cases bankruptcy is the best option for people to resolve their debt issues, however some other options are also available in the UK.
Let`s have a closer look at them.
1.An administration order.
If the debts are less than 5000 pounds an if one of the creditors succeeds in getting county court administration order declared against the debtor, the debtor might fill out an n92 form and give the court all the information about his outstanding debts and prove that his income is fixed{t} and steady.
If the court accepts this application for administration, the debtor will have to pay the court monthly and the court will redistribute the money to the lenders.
The court will take 10 per cent of these payments as a charge for arranging the set up.
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Receiving an administration order from the court means that the debtor will no longer be charged interest or late payment fees by the lenders.
2.Debt consolidation loans.
As bankruptcy means that the debtor`s credit rating will be hugely damaged and as there is a risk that his property and assets may be sold off to cover the repayments, the debtors, who are sure that the financial difficulties they are facing are only going to be for the short-term, may try to take out a debt consolidation loan.
This is one large loan to pay off multiple smaller ones. The new loan may require smaller monthly repayments than the existing debts.
One disadvantage is that the debtor will probably end up paying back more over the entire life of the debt. The 2 advantages are that firstlythe debtor might shop around and find the best bank offer with the smallest interest rate and secondly - the debt consolidation has no negative impact on the credit score.
3.Debt management plans.
The debtor has to have a steady rate of income and a decent amount of disposable income.
The debtor makes an offer to the creditor with a revised level of monthly repayments.
The debtor can do it himself or employ the help of a debt management agency which works as a liaison (лиЭйзон) between the debtor and the creditors.
4.Individual voluntary agreements.
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IVAs are legal agreements between the lenders and the debtor which can lower the monthly repayments and/or lengthen the term of the loan.
Usually such agreements are set up by insolvency practitioners (usually they are lawyers or accountants with special insolvency qualifications).
They help to work out a proposal for the lenders and ask them to agree to it.
If over three quarters of the creditors agree to the proposal, the remaining lenders will be compelled to abide by the terms and conditions of the agreement. Thus, we can see that pursuant to the UK law there are several ways to ease the financial burden of monthly debt repayments.
3) Retell the text.
Text 5
The stalking horse
1)Study the following words and expressions.
1.Sales of assets – распродажа активов
2.Pursuant to – в соответствии с
3.Potential impediments – потенциальные препятствия
4.Free of liens – не являющийся предметом залога
5.Fraudulent transfer claims – мошеннические сделки
6.Liabilities – обязательства
7.Exemption from laws -
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8.stockholder approval of the dealодобрение сделки акционерами
9.To obtain the highest and best value for the assets -
получить самую высокую цену за свои активы
10.To complete a deal – завершить сделку
11.Initial bidder=stalking horse -первоначальный участник торгов
12.Stalking horse – второе значениеподставное лицо
13.To participate in the auction – участвовать в аукционе
14.Due diligence – аудит
15.To set the floor for smth – готовить почву для чего-либо
16.Incentives – компенсации
17.Expense reimbursement – возмещение расходов
18.Break-up fee – плата за отказ (разрыв) от сделки
19.Heightened scrutiny – повышенное внимание
20.Exclusivity arrangements – эксклюзивные договоренности
21.To clinch lucrative deals – заключать выгодные сделки
2)Read the text.
Sales of assets held within the bankruptcy process pursuant to Section 363 of the US Bankruptcy Code, provide a number of benefits to a purchaser, but they also present impediments, especially to the purchasers, who are not familiar with the bankruptcy sale process.
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The benefits include:
-Obtaining the assets clear of liens;
-Protection from fraudulent claims;
-Protection against certain liabilities;
-The expedited waiting period;
-Exemption from certain state laws, including the requirement to get the stockholder approval of the deal;
-Exemption from certain taxes. The unfavorable factors include:
-The need for court approval of the deal;
-The uncertainty associated with the auction process required to maximize the value of the debtor`s assets.
The initial bidder with whom the debtor negotiates a purchase agreement is called “the stalking horse”
(bidder).
This is an old hunting term referring to a horse or a screen which hunters used to hide behind to get closer to the prey.
The initial bidders may have to spend greater resources than other bidders to negotiate the deal. They perform due diligence and set the floor for the terms of the deal.
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Potential purchasers may be reluctant to take on the role of the stalking horse, preferring other bidders to negotiate the deal.
So some incentives are negotiated to compensate the stalking horse its time and effort.
These incentives usually include:
-Expense reimbursement;
-Break-up fees;
-Exclusivity arrangements
There is always a risk that as soon as the deal is publically announced in the bankruptcy process, some third party will get interested in the debtor`s assets and agree to buy them at a higher price without any bidding incentives, using the diligence and other efforts of the stalking horse.
The only way to avoid this is to negotiate that the court approves bidding incentives before the deal is announced publically.
Expense reimbursement is offered to the stalking horse in case the debtor decides to clinch the deal with a third party which made a better offer. The stalking horse gets reimbursement of its expenses related to negotiating the deal.
Break-up fees are paid to the stalking horse if the deal breaks up for any reason. Usually break-up fees make up about 3% of the deal. Should the per cent of the break-up fee be higher, the court will study the case with more scrutiny.
-Exclusively arrangements might be the debtor`s obligation not to consider offers other than stalking horse`s, however, in a
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