Book contents
- Frontmatter
- Contents
- Acknowledgements
- Table of cases
- Table of statutes and other instruments
- List of abbreviations
- Introduction
- Part I Agendas and objectives
- Part II The context of corporate insolvency law: financial and institutional
- Part III The quest for turnaround
- 6 Rescue
- 7 Informal rescue
- 8 Receivers and their role
- 9 Administration
- 10 Company arrangements
- 11 Rescuing rescue
- Part IV Gathering and distributing the assets
- Part V The impact of corporate insolvency
- Conclusion
- Bibliography
- Index
11 - Rescuing rescue
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Acknowledgements
- Table of cases
- Table of statutes and other instruments
- List of abbreviations
- Introduction
- Part I Agendas and objectives
- Part II The context of corporate insolvency law: financial and institutional
- Part III The quest for turnaround
- 6 Rescue
- 7 Informal rescue
- 8 Receivers and their role
- 9 Administration
- 10 Company arrangements
- 11 Rescuing rescue
- Part IV Gathering and distributing the assets
- Part V The impact of corporate insolvency
- Conclusion
- Bibliography
- Index
Summary
The last four chapters have looked at four formal rescue procedures as well as different approaches to informal rescue. If we ask whether English rescue procedures are appropriate or capable of improvement we should consider not merely the individual processes involved but the broad package of procedures on offer. If that package is assessed, this raises the issue of coherence and whether the different procedures hang together in sympathy or undercut each other. It may be argued that it is beneficial to provide companies with a number of different routes to rescue, but that contention will only hold if those routes are in harmony. If some modes of rescue undermine others, the effect of variety may not be benign choice but inefficiency and confusion.
An overall assessment of rescue procedures must also bear in mind that different procedures may be brought to bear on different stages of corporate troubles. Administration, for instance, demands that the company is, or is likely to be, unable to pay its debts. But the CVA procedure is not tied to insolvency or near insolvency. The importance of this point is that at different stages of corporate difficulty, the aspirations and objectives of parties may vary. At a very early stage of corporate trouble it will be natural for directors and other parties to focus on rescue and the machinery for achieving this.
- Type
- Chapter
- Information
- Corporate Insolvency LawPerspectives and Principles, pp. 358 - 366Publisher: Cambridge University PressPrint publication year: 2002