Parallel Restructurings: Challenges and Opportunities

Abstract

The article examines the restructuring of the Vroon and Diebold groups of companies from an international insolvency law perspective. In doing so, it delves into the drivers and reasons behind the practice of parallel insolvency and restructuring proceedings, which involve separate but connected proceedings in different jurisdictions. Do these reasons promote the principles of (cross-border insolvency) law, such as equal treatment of creditors and estate value preservation and maximisation? Are there ‘good’ and ‘bad’ reasons for the existence of parallel proceedings? Addressing these questions sheds light on areas of law that might warrant revision and improvement.

The article introduces the concept of parallel proceedings, defines their different types, provides insights into recent restructuring practices and answers the questions posed above.

Keywords: Parallel proceedings, restructuring, insolvency, Vroon, Diebold, WHOA, Chapter 11, schemes.

JEL Classification: K2, K10, K22, K40, G30, G33