Financing in Distress Against Security from an English, German and Dutch Perspective: A Walk in the Park or in a Mine Field?

26 Pages Posted: 27 Oct 2011

See all articles by Roelf Jakob de Weijs

Roelf Jakob de Weijs

University of Amsterdam - Centre for the Study of European Contract Law (CSECL)

Evert J.R. Verwey

University of Amsterdam - Centre for the Study of European Contract Law (CSECL)

R. Connell

affiliation not provided to SSRN

C. Bärenz

affiliation not provided to SSRN

Date Written: October 24, 2011

Abstract

Rules on transaction avoidance in insolvencies must find a balance between protecting creditors on the one hand and enabling businesses to restructure their struggling business on the other. This article compares the English, German and Dutch rules on transaction avoidance applied to the financing of distressed debtors against security. A distinction is made between the cases in which the debtor provides security only for new credit and the case where the security right secures both old and new credit. Legislation should provide at least for a safe haven under which lenders can take security for new money.

Keywords: Insolvency, Restructuring, Transaction Avoidance, Insolvenzanfechtung, pauliana

JEL Classification: K11

Suggested Citation

de Weijs, Roelf Jakob and Verwey, Evert J.R. and Connell, R. and Bärenz, C., Financing in Distress Against Security from an English, German and Dutch Perspective: A Walk in the Park or in a Mine Field? (October 24, 2011). International Insolvency Law Review, Forthcoming, Amsterdam Law School Research Paper No. 2011-45, Centre for the Study of European Contract Law Working Paper No. 2011-17, Available at SSRN: https://ssrn.com/abstract=1950126

Roelf Jakob De Weijs (Contact Author)

University of Amsterdam - Centre for the Study of European Contract Law (CSECL) ( email )

P.O. Box 1030
Amsterdam, 1000 BA
Netherlands

Evert J.R. Verwey

University of Amsterdam - Centre for the Study of European Contract Law (CSECL) ( email )

P.O. Box 1030
Amsterdam, 1000 BA
Netherlands

R. Connell

affiliation not provided to SSRN

C. Bärenz

affiliation not provided to SSRN

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