Corporate rescue regimes in Asia-Pacific jurisdictions are
varied in their approach, focus and procedures. Overall,
however, they tend to be creditor driven and externally
administered. This is in contrast to the US Bankruptcy Code,
Chapter 11. The debtor-in-possession process in Chapter 11 is,
as its name suggests, debtor driven and debtor managed. Is
there a case for adopting Chapter 11-style reforms in Asia?
While there would be some advantages, it is unlikely to happen
soon in most countries in Asia-Pacific.
Any comparative discussion of this nature needs to recognise
that corporate rescue regimes throughout Asia are not uniform.
Australia has a Voluntary Administration (VA) regime in which
the administrator is appointed out of court, although in the
writer's experience the court's supervisory role is often
(perhaps usually) invoked at some point. Singapore has a
process of judicial management that requires an appointment of
the manager by the court. Hong Kong...