In 1978, when the United States was faced with an earlier economic crisis, the U.S. Congress enacted a bankruptcy law that aimed to encourage creditors to recapture their debts over time and avoid the significant, abrupt job losses concomitant with liquidation. Among the more unique provisions of that law were:
- a self-effectuating injunction during which time the debtor may continue to trade;
- the power to cram down dissenting creditors who were receiving otherwise fair treatment; and
- the ability to force discharge of claims by creditors and shareholders that were out of the money.
The measures introduced by the Act borrow some of those U.S. bankruptcy concepts. The Act represents a shift toward a business rescue culture more in line w…
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