This would protect a company from claims being brought while its pursuing a scheme, Ashurst insolvency partner Alinta Kemeny said.
US Chapter 11
Ms Kemeny said the current schemes of arrangement framework already allowed for a debtor-in-possession model, but a costly court-driven process meant it was primarily used only by large corporations.
The Ashurst partner, who specialises in such schemes, said taking elements from the US debtor-in-possession Chapter 11 model would be a way to make the process more attractive and usable.
Two of the key things people tend to think are really valuable from a US chapter 11, other than the automatic stay, are debtor-in-possession funding and the ability to effect cross class cram down, she said.
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Read the full article at: https://www.afr.com/politics/federal/insolvency-reforms-would-benefit-from-us-style-bankruptcy-options-20210503-p57oct
