Europe: If it ain’t broke

Author: | Published: 22 Aug 2016
Source of British pride: Bond or schemes?

The UK government's proposal to overhaul its approach to insolvency has made waves among restructuring practitioners.

Proposed measures to allow the continuation of business during the restructuring period have been welcomed, as has more flexibility in the procedure and better options for rescue financing.

It's another suggestion that's caused controversy: a 90-day moratorium period, a tool found in the US' wildly popular and well-respected Chapter 11 process. The instrument, which acts as a truce between debtor and creditor, sounds reasonable enough. Who wouldn't support giving struggling companies a period of time to stop and consider...