FW: To what extent do you believe the UK insolvency regime should be influenced or guided by the principles and processes of US Chapter 11?
Bryan: Previous amendments to UK law started from the basis that Chapter 11 was something of a gold standard. However, lobbying by the banks and the insolvency profession largely negated any such changes. Chapter 11 has had problems in the US. It is an expensive process that few businesses use in its original intended form. The ability of every class of creditor to appoint advisers at the debtor companys expense has turned it into a fee feast for lawyers and others. Current practice is to avoid a drawn-out process by a quick asset sale or pre-negotiated solution. The current UK and EU proposals share …
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