Reforming the Governance of Corporate Rescue: The Enterprise Act 2002
University of Oxford - Faculty of Law; University of Oxford - Said Business School; European Corporate Governance Institute (ECGI)
World Bank Global Initiative on insolvency and Creditor/Debtor Regimes; University College London (UCL) - Faculty of Laws; Chambers of Michael Crystal QC
ESRC Centre for Business Research Working Paper No. 288
English corporate insolvency law has been reshaped by the Enterprise Act 2002. The Act was intended to 'to facilitate company rescue and to produce better returns for creditors as a whole'. Administrative receivership, which placed control of insolvency proceedings in the hands of banks, is for most purposes being abolished. It is being replaced by a 'streamlined' administration procedure. Whilst it will still be possible for banks to control the appointment process, the administrator once in office owes duties to all creditors and must act in accordance with a statutory hierarchy of objectives. In this article, we seek to describe, and to evaluate, this new world of corporate rescue.
Number of Pages in PDF File: 60
Keywords: Corporate insolvency, corporate rescue, secured credit
JEL Classification: G33, G38, K22working papers series
Date posted: July 25, 2004
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