Download or read book Debt Restructuring in English Law written by Jennifer Payne and published by . This book was released on 2014 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the debt restructuring mechanisms available to companies in English law, compares these mechanisms with the Chapter 11 procedure in the US, and makes some suggestions for reform of the English system in this context. Rehabilitating a company in financial difficulties will almost always be preferable to liquidation for companies and their creditors, at least where the company is merely financially distressed, i.e. it is cash flow insolvent but nevertheless economically viable, so that there is a business worth saving. Five debt restructuring mechanisms are available to companies in English law: workouts, Company Voluntary Arrangements (CVAs), schemes of arrangement, administration and, lastly, a recent innovation of practitioners has been to twin a scheme of arrangement with administration. None of these devices are ideal as debt restructuring tools, as explained in this paper. Lessons can be learned from the US Chapter 11 process, although a simple transplantation of this procedure into English law is not recommended, as there are also disadvantages to the US procedure. Instead it is suggested that the English scheme of arrangement be reformed to allow a cramdown of whole classes to take place, to attach a moratorium to this procedure and to enhance the valuation process where restructuring takes place. Making these changes would provide English law with a stronger and more effective debt restructuring procedure.

Download or read book The Law and Practice of Restructuring in the UK and US written by Shai Y. Waisman and published by Oxford University Press, USA. This book was released on 2011-04-07 with total page 535 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Law and Practice of Restructuring in the UK and US is a practical guide to the restructuring of corporate debt and associated restructuring issues such as employees and pensions, from the perspective of both UK and New York law, the dominant systems of law in the world commercial and financial markets. At a time when many companies are looking at renegotiating and restructuring their debt agreements, this book provides a timely analysis of current techniques and likely developments in the field of corporate restructuring. An expert contributor team from both the US and UK combine their practical experience to cover all aspects of corporate restructuring. Through vivid exposure of the differences between the two jurisdictions, this book considers likely developments in the corporate restructuring landscape, for example the US Chapter 11 paradigm, as well as addressing lessons learned from past issues which are likely to feed into future develompents With coverage of techniques available to both stressed and distressed companies, as well as looking at specialist markets and key stakeholders, The Law and Practice of Restructuring in the UK and US is an invaluable guide for banking, finance and insolvency practitioners and their clients, both financial institutions and companies looking to restructure debt, as well as global accountancy firms and law and business schools worldwide.

Download or read book Debt Restructuring A Sad Tale for Those Left Out written by Francisco Vasconcelos Pimentel and published by Leya. This book was released on 2023-08-03 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Francisco Vasconcelos Pimentel - Debt Restructuring: A Sad Tale for Those Left Out Este artigo faz parte da Revista de Direito da Insolvência n.o 2 (2018)

Download or read book Sovereign Debt Restructuring and English Governing Law written by Steven L. Schwarcz and published by . This book was released on 2017 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Whether or not their fault, nations sometimes borrow at levels that become unsustainable. Until resolved, the resulting debt burden hurts not only those nations but also their citizens, their creditors, and -- by posing serious systemic risks to the international financial system -- the wider economic community. The existing contractual framework for restructuring sovereign debt is inadequate, often leaving little alternative between a bailout, which is costly and creates moral hazard, and a default, which raises the specter of financial contagion and chaos. Although global organizations, including the United Nations and the International Monetary Fund, have tried to strengthen the sovereign-debt-restructuring framework through treaties, such a multilateral legal approach is highly unlikely to succeed in the near future. This essay argues that a model-law approach should facilitate sovereign debt restructuring much more feasibly than a multilateral approach. Model laws have long been used in cross-border lawmaking, when treaties fail. Unlike a treaty, a model law does not require widespread acceptance for its implementation. In particular, if this essay's model law were enacted into English law, that alone would enable the fair and consensual restructuring of the immense stock -- perhaps a quarter to a third or more of all sovereign debt contracts -- of such contracts governed by that law. And because it would achieve, by operation of law, the equivalent of the ideal goal of including aggregate-voting collective action clauses in all sovereign debt contracts, such enactment should ensure the continuing legitimacy and attractiveness of English law as the governing law for future sovereign debt contracts.At the very least, however, this essay should serve to increase a model-law approach's political feasibility by explaining the approach and its potential benefits and limitations. An incremental approach to developing norms, such as one developed through a model law, has strong precedent in the legal ordering of international relationships.

Download or read book Debt Restructuring written by Rodrigo Olivares-Caminal and published by Oxford University Press, USA. This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The new second edition of Debt Restructuring provides detailed legal analysis of international corporate, banking, and sovereign debt restructuring, from the perspective of both creditors and debtors. It sets out practical guidance to help practitioners, policy-makers and academics to understand current developments in debt restructuring, and provides solutions for creditors holding distressed debt and debtor options in a distressed scenario. The Corporate Debt section includes a number of very significant changes such as the UK Supreme Court decision in Eurosail and the disapproval of the "point of no return" test for balance sheet insolvency or the endorsement of the Cheyne Finance decision on cashflow. The changes in treatment of schemes of arrangement since with the decision in Rodenstock are reflected as are the Recast European Insolvency Regulation (EIR) and the Supreme Court decision in Rubin. In the US chapter the new edition considers the limitations on bankruptcy court jurisdiction in Stern v. Marshall and, in the RadLax case, the right of secured creditors to credit bid in a sale of their collateral under a chapter 11 plan. Other significant case law includes consideration of the various safe harbour provisions of the Bankruptcy Code relating to derivative and other financial instruments and cases concerning the effect of foreign court orders in the US. In the Bank Resolution section, the UK part also has been substantially amended to reflect the new system of macro and micro prudential oversight with the establishment of the PRA, FCA, FPC, and the FSCS. Additionally it reflects changes introduced by the Financial Services Act 2012 and by the Financial Services (Banking Reform) Act 2013. Additionally there is a new chapter in this part on the EU framework on the resolution of banks and financial institutions which analyses and explains initiatives such as SRM, and the Bank Recovery and Resolution Directive. The US chapter reflects changes in Fannie and Freddie conservatorships, the FDIC's SPE strategy under Dodd-Frank, the proposed GLAC requirements, and resolution plan filings. In the Sovereign Debt section, there is detailed coverage of the New York litigation on the pari passu litigation and its interpretation in sovereign debt contracts. Also, this section of the book analyses the adoption of single-limb CACs in the aftermath of the Greek restructuring as well as the proposal for creditor engagement clauses. It also provides full analysis of the EU architecture implemented to prevent a sovereign debt crisis, including the creation of new stabilization mechanisms (EFSF and ESM), and the challenges presented to the single-currency area.

Download or read book UK Debt Restructuring Mechanisms written by Jennifer Payne and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: An effective debt restructuring mechanism is an important part of a regime's ability to deal with corporate financial distress. A recent EU Commission Recommendation has emphasized the importance of all Member States possessing effective restructuring mechanisms in order to facilitate the rescue of viable companies. English law provides a range of mechanisms that may be utilized in this regard, and yet none of them, used alone, provide all of the valuable components for a restructuring regime identified in this paper, namely the existence of a moratorium while the restructuring is negotiated, the possibility of early intervention, an effective mechanism for cram down, and the facility for the debtor to stay in charge of the business of the company during the restructuring. Schemes of arrangement come closest, but must be twinned with administration to access a moratorium and to facilitate a de facto cram down of whole classes of shareholders and/or junior creditors. While these tools, alone or in combination, provide English law with a restructuring regime which works in practice, the requirement imposed by the European Commission's Recommendation for Member States to consider a minimum package of features for their restructuring regimes that contain all four of these features, prompts the reflection that perhaps it is time to reform English law to allow these features to be accessed via a single mechanism. It is suggested here that reforming schemes to add a statutory stay and a fuller cram down facility would be beneficial. Indeed, it is suggested that making these changes would provide English law with a stronger and more effective debt restructuring procedure.

Download or read book Collective Action Clauses and the Restructuring of Sovereign Debt written by Patrick S. Kenadjian and published by Walter de Gruyter. This book was released on 2013-08-01 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: The volume contains articles based on presentations given at a conference hosted by the Institute for Law and Finance of Goethe University on October 27, 2011. Collective action clauses are an example of the typical dichotomy of financial regulation: While the problems are economic in nature, the solutions need to be implemented by law. The Institute for Law and Finance strives to bring together law and finance in order to foster a better mutual understanding of both disciplines and to improve the regulation of financial markets. Thus, the organizers are particularly pleased that eminent experts from the fields of law and finance agreed to participate in the event and to share their views on and experiences with collective action clauses. The presentations given at the conference have been updated in 2012 to reflect recent developments.

Download or read book Sovereign Debt Restructurings 1950 2010 written by Mr.Udaibir S. Das and published by International Monetary Fund. This book was released on 2012-08-01 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.

Download or read book Maps of World Financial Law written by Philip R. Wood and published by . This book was released on 2008 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Maps of World Financial Law - from the leading expert on global financial law and practice this is the only available series of maps and charts on key subjects in world financial law and practice allowing you to easily understand, explain and analyse information across the world's jurisdictions.

Download or read book New Financing for Distressed Businesses in the Context of Business Restructuring Law written by Sanford U. Mba and published by Springer. This book was released on 2019-06-29 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the restructuring of distressed businesses, emphasizing the need for new financing during the restructuring process as well as during relaunch, and examines the role of law in encouraging creditor confidence and incentivizing lending. It describes two broad approaches to encouraging new finance during restructuring: a prescriptive one that seeks to attract credit using expressly defined statutory incentives, and a market-based one that relies on the business judgment of lenders against the backdrop of transaction avoidance rules. Securing new financing for a distressed business is a critical part of successful restructuring. Without such financing, the business may be unable to meet interim liquidity constraints, or to implement its restructuring plans. This book addresses related questions concerning the place of new financing as an essential component of restructuring. In general terms, the book explores how statutory interventions and the courts can provide support with contentious issues that arise from the provision of new financing, whether through new financing agreements or through distressed debt investors, who are increasingly gaining prominence as sources of new financing for distressed businesses. It argues that courts play a key part in preventing or correcting the imbalances that can arise from the participation of distressed debt investors. In this context, it critically examines the distressed debt market in emerging markets like Nigeria and the opportunity presented by non-performing loans, arguing that the regulatory pattern of market entry may dis-incentivize distress debt investing in a market that is in dire need of financing. The book offers a fresh and comparative perspective on restructuring new financing for distressed businesses by comparing various approaches (primarily from the US, UK and Germany) and drawing lessons for frontier markets, with particular reference to Nigeria. It fills an important gap in international comparative scholarship and discusses a living problem with both empirical and policy aspects.

Download or read book Restructuring Sovereign Debt written by and published by . This book was released on 2017 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Out of Court Debt Restructuring written by The World Bank and published by World Bank Publications. This book was released on 2011-12-21 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study provides a conceptual framework for the analysis of the questions of out-of-court debt restructuring from a policy-oriented perspective. The starting point of the analysis is given by the World Bank Principles for Effective Insolvency and Creditor Rights Systems. The study offers an overview of out-of-court restructuring, which is not seen as fundamentally opposed to formal insolvency procedures. Actually, the study contemplates different restructuring techniques as forming a continuum to the treatment of financial difficulties. Thus, from the purely contractual or informal arrangements for debt rescheduling between the debtor and its creditors, to the fully formal reorganization or liquidation procedures, there are numerous intermediate solutions. In the study, these solutions are identified by the terms of enhanced procedures where the contractual arrangements are supported by norms or principles for workouts; and hybrid procedures where the contractual arrangements are supported by the intervention of the courts or an administrative authority. The study discusses the advantages and disadvantages of all the debt restructuring techniques, and concludes, in this regard, that a legal system may contain a number of options a menu that can cover different sets of circumstances. In the end, the law may offer a toolbox with very different instruments that the parties may use depending on the specific facts of the case. A substantial part of the study is devoted to the analysis of the enabling regulatory environment for out-of-court restructuring. It is evident that debt restructuring does not operate in a vacuum: in fact, the general legal system influences and to a certain extent determines the possibilities for debt restructuring in any given jurisdiction. The study provides a checklist that can be used to examine the features of a legal system that bear a direct influence on debt restructuring activities. The different characteristics of informal restructurings, and of enhanced and hybrid debt restructurings are covered by the study. The different approaches to debt restructuring aim at combining the advantages of an informal approach with the advantages of formal procedures: especially, the existence of a moratorium on creditor actions and the binding effects of creditor agreements concluded within the insolvency process.

Download or read book The Future of UK Debt Restructuring written by Jennifer Payne and published by . This book was released on 2016 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of regimes containing an effective mechanism to enable the rescue of distressed but viable businesses is increasingly recognised. In the UK the importance of developing a rescue culture has been appreciated for some time and a number of different mechanisms exist which can be used to restructure the debt of distressed companies. The purpose of this paper is to assess the debt restructuring mechanisms currently available to companies in English law and to consider whether reform is needed. There have been a number of calls for the reform of English debt restructuring mechanisms in recent years, most recently by the UK Insolvency Service in 2016, and these reform proposals are analysed and assessed. It is suggested that reform is needed, but that these reforms will need to be introduced with skill and care in order to ensure that the UK's regime remains fit for purpose for the future.

Download or read book Expedited Debt Restructuring written by Rodrigo Olivares-Caminal and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thirteen national jurisdictions are covered in depth in this book. There are also general chapters on the global impact of merger legislation in the European Union and the United States, tax regimes, and private international law. The authors--each an expert in his or her own country's insolvency law regime--provide precise information on the eligibility requirements, restrictions, and other provisions of the laws they discuss. They also analyze the important relevant cases in their jurisdictions. Jurisdictions covered: Argentina. Australia. Brazil. Canada. England and Wales. France. Hong Kong. India. Italy. Japan. Poland. Turkey. USA.

Download or read book Schemes of Arrangement written by Jennifer Payne and published by Cambridge University Press. This book was released on 2021-12-16 with total page 453 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines schemes of arrangement, which are an invaluable tool for companies in restructuring their capital.

Download or read book Toward a Statutory Approach to Sovereign Debt Restructuring written by Mr.Patrick Bolton and published by International Monetary Fund. This book was released on 2003-01-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an overview of key elements of Corporate Bankruptcy Codes and Practice around the world that are relevant to the debate on Sovereign Debt Restructuring. It highlights four components common to most bankruptcy reorganization institutions: a stay on debt collection efforts to prevent a costly run for the assets, broad enforcement of absolute priority, majority voting among creditors on the proposed reorganization plan, and new higher priority financing to keep the firm going while its liabilities are restructured. The paper argues that these components ought to be present in any sovereign debt restructuring procedure.

Download or read book A Guide to Consumer Insolvency Proceedings in Europe written by Thomas Kadner Graziano and published by Edward Elgar Publishing. This book was released on 2019 with total page 1266 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the adoption of the EU Regulation on Insolvency Proceedings in 2000 and its recast in 2015, it has become clear that lawyers engaged in consumer insolvency proceedings are increasingly expected to have a basic understanding of foreign insolvency proceedings, as well as knowledge of the foreign country's court and legal system, legislation and judicial practice. Written by 50 highly qualified insolvency experts from 30 European countries, A Guide to Consumer Insolvency Proceedings in Europe provides the necessary information in the largest, most up-to-date and comprehensive book on this topic. Assisting the readers in their navigation through the differences, similarities, and peculiarities of insolvency proceedings in all Member States of the European Union, Switzerland and Russia, this book is a unique guide to insolvency proceedings across Europe. With contributions by both academics and practitioners, it provides truly multinational coverage of the economic, legal, social, political, and demographic issues in consumer insolvency. Illustrating the numerous practices across Europe, this book allows the reader to evaluate each aspect both on its own merits, as well as in comparison to the approaches applied in other European jurisdictions. This book will be an invaluable tool for insolvency practitioners, judges, lawyers, creditors and debtors throughout Europe, especially those participating in cross-border proceedings.