Beschrijving
This book investigates the role and effects of pre-packs within four different jurisdictions: the United States of America, the United Kingdom, The Netherlands and France. The rationale is to answer why pre-packs became in a short period of time the new restructuring model. Indeed, distressed companies are more inclined to apply for a quick restructuring mechanism than a long procedure which in addition to being costly, is also less efficient.
Moreover, it compares the role of every stakeholder, and their perception about pre-packs. Some jurisdictions are court driven whereas others rely on insolvency practitioners, employees will be subject to different levels of protection, secured and unsecured creditors may have divergences about the rescue. Directors can potentially have a great responsibility on the pre-pack success, or conversely may be discarded. The comparison will be helpful to define the winners and losers under a pre-packaged sale.
Upstream rescue mechanisms, and especially pre-packs offer the possibility to honest entrepreneurs having financial difficulties to obtain a second chance, and run their business on the road to success. The clear benefits of this procedure overrides the drawbacks, all the more so the financial crisis dispersed the remaining doubts about the necessity to implement this instrument into these various jurisdictions.
