Rescuing Companies Involved in Insolvency Proceedings with Rescue Plans
NACIIL Reports 2012
40 Pages Posted: 31 May 2013
Date Written: January 11, 2013
Rescuing failing companies in insolvency proceedings has become a common phenomenon for practioners as well as legislaters. This article examines how the idea of rescue entered the insolvency arena and which principles determine the proceedings. It will start by first outlining the fundamentals of rescue efforts in insolvency proceedings. From there, the creation of a distinguished set of rules will be recommended for two very different scenarios in rescue cases: prepared and unprepared cases, both of which should nonetheless be addressed by insolvency law. In closing, the ideas of the European Parliament and INSOL Europe regarding rescue plans will be discussed, which offers the opportunity to translate the fundamentals of rescue efforts into detailed remarks on the proposed European Rescue Plan.
Keywords: bankruptcy, insolvency, rescue, plan, equity, shareholder, creditor, expedited proceedings, rescue plan
JEL Classification: K40, K22
Suggested Citation: Suggested Citation