Full Description
This book examines common intra-group financial transactions, such as intra-group loans and cross-guarantees, highlighting their impact and treatment in the insolvency and restructuring of multinational enterprise groups. It identifies the unique challenges posed by the complex corporate and financial structures of multinational firms when one or more group entities face insolvency. It provides a comparative analysis of statutes and recent case law from three leading restructuring forums: the UK, the USA and the Netherlands.
Key Features:
Assesses how insolvency law can better respond to the economic realities of corporate groups and their financial arrangements.
Identifies post-global financial crisis regulations for banking groups and how they can inform solutions for corporate group insolvencies.
Investigates modern commercial practices and legal tools for group restructurings, including third-party releases, extended enforcement stays, rescue financing and safe harbours against transaction avoidance.
Analyses common intra-group financial arrangements, such as intra-group loans, centralised cash management, cross-guarantees and other forms of shared liability, exploring the major problems they create in insolvency.
Clear, comparative and comprehensive in scope, this book offers valuable insights for judges and lawyers specialising in company, financial and insolvency law, as well as for insolvency practitioners and policymakers. It also serves as an essential resource for students and scholars in the fields of corporate law and governance, insolvency law, finance and banking law.
Contents
Contents
Preface x
Table of cases xvii
Table of legislation xxviii
PART I INTRODUCTION
1 What this book is about 2
PART II ENTERPRISE GROUPS: THEIR LIFE AND DEATH
2 Phenomenon and rise of multinational enterprise groups 26
3 Enterprise groups and insolvency law 46
PART III PRINCIPLES OF INSOLVENCY LAW AND HOW TO BALANCE THEM
4 Principles of insolvency law and conflicts between them 75
PART IV INTRA-GROUP FINANCING AND INSOLVENCY: TRANSACTIONS AND PROBLEMS
5 Cross-guarantees, recourse claims and 'orphan restructurings' 103
6 Intra-group loans and statutory subordination 147
7 Facing uncertainty: intra-group financing and transaction avoidance 178
PART V GROUP-SENSITIVE INSOLVENCY LAW: TOOLS AND SOLUTIONS
8 Group debt deleveraging and debt adjustment: third-party releases 207
9 Insolvency stay on creditor action and its extension to group entities 239
10 Intra-group rescue financing: safe harbours and pre-emptive strategies 267
PART VI CONCLUSION
11 Key findings and observations 297
Index 312
