McCormack, G. orcid.org/0000-0002-1574-1296 (2023) Debt restructurings, debt grifting and the limits of contractualism. International Insolvency Review, 32 (3). pp. 474-496. ISSN 1180-0518
Abstract
This article critically examines corporate restructuring plans and schemes in the United Kingdom and United States and third-party releases in the context of such corporate restructurings. So far, the practice has been more extensively examined in the United States rather than the United Kingdom and the practice has been castigated as ‘debt grifting’, that is, third parties getting the benefit of a bankruptcy discharge without going through the formal bankruptcy process. This article acknowledges some of these criticisms. It also suggests that, if third-party releases become more widespread in the United Kingdom, this is likely to militate against the success of the United Kingdom as an international corporate restructuring venue. This is particularly the case if the underlying debt is disputed or gives rise to social or political controversy. The article is divided into five parts. After the first introductory part, the second part will examine how debts are restructured in the large corporate context in the United Kingdom and how third-party releases are important for this endeavour. The third part will examine the equivalent position in the United States. The fourth part explores how the restructuring solutions currently on the table push up against the limits of contractually derived solutions. The final part concludes.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 INSOL International and John Wiley & Sons Ltd. This is the peer reviewed version of the following article: McCormack, G. (2023) Debt restructurings, debt grifting and the limits of contractualism. International Insolvency Review, 32 (3). pp. 474-496. ISSN 1180-0518, which has been published in final form at https://doi.org/10.1002/iir.1523. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Law (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 10 Jan 2024 11:55 |
Last Modified: | 10 Jan 2024 11:55 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1002/iir.1523 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:207389 |
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