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A Scandal Strategy for Corporate Restructuring?

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BombardierHow do you restructure a company? This article describes established strategies, from corporate takeovers in the 80s to pre-pack sales at the beginning of this century. Against this background, it claims that a new (potentially disruptive) trend is emerging from cases like Bombardier and Mitsubishi. This trend is represented by fire-acquisitions after the target company has been hit by a corporate scandal which has significantly depressed its market value (‘scandal strategy for corporate restructuring’).

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From ‘Liquidators’ to ‘Practitioners in the Field of Restructuring’: Sea Change or Cosmetic Maquillage?

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IPThe Proposal for a Directive on Preventive Restructuring Frameworks (November 2016) introduced a new figure in the insolvency and restructuring arena: the practitioner in the field of restructuring or PIFOR.

This note highlights the key similarities and differences between these professionals and (i) the ‘insolvency practitioners’ as defined by the 2015 EU Regulation on Cross-Border Insolvency Proceedings (recast) and (ii) the ‘liquidators’ as defined by the 2000 version of that regulation.

This note assumes that the key objective of the proposed directive is to achieve greater substantive harmonization of substantive insolvency practices and laws between the Member States. It therefore tests whether this assumption is valid with reference to the newly introduced notion of PIFOR.

It concludes, however, that the proposal fall short of the mark, since the new definition of PIFOR is unlikely to be interpreted in the same way across all the Member States.

In addition to that, this note highlights other issues associated with the proposed notion of PIFOR: (i) the uncertainty associated with the definition and its scope, and (ii) the possible relaxation of professional and ethical standards as a result of the competition between IPs and PIFORs.

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O.W. Bunker: Cross-Border Insolvency Issues in the Maritime World

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owblogoOn November 7, 2014 O.W. Bunker, the parent company of a global network of traders and physical suppliers of fuel bunkers, filed for bankruptcy protection in Denmark upon the discovery of a massive fraud and unsupervised trading which resulted in losses of about US$275 million. This forced nearly all of its subsidiaries to file for bankruptcy in their respective countries of incorporation. Shortly thereafter, a co-operation agreement was reached between O.W. Bunker and ING Bank, as the assignee of a number of debts due to the parent company.

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EU: Bye Bye ‘Liquidation Culture’?

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On Tuesday 22 November 2016, the European Commission ‘Insolvency Initiative’ – part of the Capital Markets Union Action Plan and the Single Market Strategy – finally produced a tangible and remarkable result: a proposal for a restructuring directive, and the harmonization of substantive insolvency practices among European Member States. Continue reading
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Have Italians Bankrupted Italian Banks?

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In another wave of anti-establishment protest, Italian citizens decided to reject by a large majority the constitutional reforms introduced by the Government and strongly backed by the Prime Minister, Matteo Renzi, thus forcing him to resign from his office. What is the link between a referendum on the implementation of significant amendments to the Italian fundamental law, and the systemic failure of the country’s banking sector? Continue reading