Americas: Time for a rethink?

Author: | Published: 23 Apr 2015
Municipalities’ path to recovery under the US Bankruptcy Code is just as clear
The US Bankruptcy Code is one of the clearest and most respected in the world. Companies facing insolvency try to leverage off any US connection they might have to gain access to it.

Corporates' use of Chapter 11 has increased tremendously over the last decade. Foreign companies including Overseas Shipholding Group, CEDC Vodka and Maxcom have all used US assets, subsidiaries or registrations as a means to file bankruptcy under US law. Debtors and creditors typically have more confidence in the outcome when a proceeding is handled in this well tested way.

For municipalities, however, the Code...