Abstract

http://ssrn.com/abstract=1245604
 
 

Footnotes (188)



 


 



What Liquidation Does for Secured Creditors, and What it Does for You


Riz Mokal


University College London (UCL) - Faculty of Laws; World Bank Global Initiative on insolvency and Creditor/Debtor Regimes; 3-4 South Square Chambers


Modern Law Review, Vol. 71, Issue 5, pp. 699-733, September 2008

Abstract:     
This article analyses the liquidation process, challenging the much repeated proposition that secured claimants stand outside liquidation. It is argued that this proposition (i) is a product of a misunderstanding of the dual duality in the nature of liquidation proceedings, in that, in principle, they serve both public and private functions, and they further the interests of both secured and unsecured creditors; (ii) overlooks how secured creditors benefit from liquidation, and also how unsecured creditors have a real interest in the proper administration of their debtor's encumbered assets; (iii) mistakes the secured creditor's choice in usually being able to gain immunity from the liquidation process, for a compulsion to stand exiled from this process; (iv) is incorrect as a matter of history and practice; and (v) is rendered unsustainable by the statutory text. It concludes that secured creditors have never stood outside liquidation, that liquidation is an important tool for the protection of their interests, and that it is right to require floating charge holders to pay their fair share of liquidation expenses.

Number of Pages in PDF File: 35

Accepted Paper Series


Date posted: August 22, 2008  

Suggested Citation

Mokal, Riz, What Liquidation Does for Secured Creditors, and What it Does for You. Modern Law Review, Vol. 71, Issue 5, pp. 699-733, September 2008. Available at SSRN: http://ssrn.com/abstract=1245604 or http://dx.doi.org/10.1111/j.1468-2230.2008.00712.x

Contact Information

Riz Mokal (Contact Author)
University College London (UCL) - Faculty of Laws ( email )
London WC1E OEG
United Kingdom
+44 - (0)20 - 7679 1406 (Phone)
+44 - (0)20 - 7679 1461 (Fax)
HOME PAGE: http://www.ucl.ac.uk/laws/
World Bank Global Initiative on insolvency and Creditor/Debtor Regimes
The World Bank
1818 H St NW
Washington, DC 20433
United States
3-4 South Square Chambers ( email )
3/4 South Square
Gray's Inn
London, WC1R 5HP
United Kingdom
HOME PAGE: http://www.southsquare.com/
Feedback to SSRN


Paper statistics
Abstract Views: 517
Downloads: 4
Footnotes:  188

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.297 seconds