Prize: Prize (including medals and awards) › Academic
Where a company is in financial distress, there are two options: rescuing the company by restructuring or liquidating the company. Since liquidation destroys the company and its value, restructuring is preferable. It is of great importance that companies in financial distress have access to a framework enabling them to restructure in order to prevent insolvency. Effective restructuring of viable companies in financial distress contributes to saving jobs and also benefits the wider economy.
In general, in Europe, the UK insolvency system is sophisticated. In the UK, viable companies can make use of three restructuring procedures: the pre-pack, the scheme of arrangement, and the company voluntary arrangement. Despite the fact that the development of restructuring options for companies is welcome, the question arises whether creditor protection is sufficiently ensured.
In most European countries unviable companies in financial distress can be dissolved quickly and cheaply. In the UK it is possible to strike off a company from the Companies Register and thereby terminate its existence. This procedure is considered inexpensive and easy. The question arises whether creditor protection is ensured.
During my research at the University of Oxford the question whether creditor protection is sufficiently ensured in restructuring and dissolving proceedings in the UK will be answered.