Corporate Rescue Essay

These three processes not only operate through different procedures but they are also attuned to the pursuit of different objectives and values, they are subject to different controls and they involve different roles for, and relationships between, the parties affected by corporate rescues.

Three connected processes make up the UK corporate rescue regime: the formal, legal regime, informal approaches and the quasi-formal system, as exemplified by the pre-packaged administration.

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These changes were motivated by fairness and efficiency concerns, notably the concern that the UK's administrative receivership procedure was not conducive to rescue outcomes and operated to the detriment of unsecured creditors.

This article discusses the Enterprise Act reforms in the context of wider theoretical debates about the desirability (or otherwise) of secured creditor control of corporate rescue procedures.

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’ (2010) Recovery 30; House of Commons Business and Enterprise Committee Statement of Insolvency Practice 16 (London: R3, 2009) – professional guidance for IPs issued by the Joint Insolvency Committee (JIC) and which was adopted by all the relevant professional regulatory bodies and took effect from 1 January 2009.Prices in GBP apply to orders placed in Great Britain only.Prices in € represent the retail prices valid in Germany (unless otherwise indicated). Prices do not include postage and handling if applicable. With effect from September 15, 2003, the Enterprise Act made significant changes to the governance of corporate rescue procedures in the United Kingdom which involved a shift away from a “concentrated creditor” model of governance towards a “dispersed creditor” model of governance which vests greater control rights in unsecured creditors collectively.It then presents in summary form the findings of an empirical study carried out by the authors that sought to evaluate the impact of the Act by comparing the gross realizations, costs and net returns to creditors in a sample of 284 corporate insolvencies commenced before and after the law changed.Whilst we find that gross realizations have increased under the streamlined administration procedure introduced by the Act when compared with the old receivership procedure, we also find that costs have increased.If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.General note: By using the comment function on you agree to our Privacy Statement.uses cookies to store information that enables us to optimize our website and make browsing more comfortable for you.To learn more about the use of cookies, please read our privacy policy. by Bergmann, Alfred / Drescher, Ingo / Fleischer, Holger / Goette, Wulf / Harbarth, Stephan / Hommelhoff, Peter / Krieger, Gerd / Merkt, Hanno / Teichmann, Christoph / Vetter, Jochen / Weller, Marc-Philippe / Wicke, Hartmut *Prices in US$ apply to orders placed in the Americas only. Leaving the Shadows of US Bankruptcy Law: A Proposal to Divide the Realms of Insolvency and Restructuring Law. An understanding of the tensions between these three systems and an awareness of the challenges posed by transition through different procedures does, however, help to explain many of the deficiencies of current corporate rescue processes and it also provides an enhanced basis for considering current proposals for reforming restructuring and working towards an improved rescue regime. A number of negative and identifiable consequences flow from such divergences.

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