Debt Restructuring and Notions of Fairness

24 Pages Posted: 14 Jul 2017

See all articles by Sarah Paterson

Sarah Paterson

London School of Economics - Law School

Date Written: July 2017


This article examines concern for fairness in the way in which loss is distributed when a company or financial institution facing financial difficulties is restructured. It shows how this concern is often grounded in loose notions of fairness, or generalisations from one situation to another, rather than in detailed analysis. Adopting an interdisciplinary approach, it builds an analytical frame for the fairness debate in debt restructuring. It shows why rigour is important in identifying fairness concerns, in weighing them against other considerations, and in applying concerns which arise in one scenario to another, and illustrates the types of policy mistake or policy incoherence which can arise if this is not done.

Suggested Citation

Paterson, Sarah, Debt Restructuring and Notions of Fairness (July 2017). The Modern Law Review, Vol. 80, Issue 4, pp. 600-623, 2017, Available at SSRN: or

Sarah Paterson (Contact Author)

London School of Economics - Law School ( email )

Houghton Street
London WC2A 2AE, WC2A 2AE
United Kingdom

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