Corporate Reorganization. Motivation of Dissent and Binding of Dissenting Class of Secured Creditors

1937 ◽  
Vol 37 (2) ◽  
pp. 312
Author(s):  
Sarah Paterson

This chapter explores the way in which the shifts in the fields of finance and non-financial corporates discussed in Chapters 3 and 4 have led to changes in US secured transactions law. It examines the way in which these changes have, in turn, shifted bargaining power towards secured creditors when a debtor attempts to reorganize its debt and equity finance. However, the argument is made that this gives rise to different issues from the traditional concern for secured creditor liquidation bias when it is set in the wider organizational and institutional environment which the book has begun to examine. Turning to England, the chapter explores how the English courts have generally supported the allocation of control rights in distress to senior financial creditors. It reveals why this has, once again, made English corporate reorganization law particularly well adapted to the demands of the past decade.


Author(s):  
Sarah Paterson

This book is concerned with the way in which forces of change, from the fields of finance and non-financial corporates, cause participants in the corporate reorganization process to adapt the ways in which they mobilize corporate reorganization law. It argues that scholars, practitioners, judges, and the legislature must all take care to connect their conceptual frameworks to the specific adaptations which emerge from this process of change. It further argues that this need to connect theoretical and policy concepts with practical adaptations has posed particular challenges when US corporate reorganization law has been under examination in the decade since the financial crisis. At the same time, the book suggests that English scholars, practitioners, judges, and the legislature have been more successful, over the course of the past ten years, in choosing concepts to frame their analysis which are sensitive to the ways in which corporate reorganization law is currently used. Nonetheless, it suggests that new problems may be on the horizon for English corporate reorganization lawyers in adapting their conceptual framework in the decades to come.


1919 ◽  
Vol 32 (5) ◽  
pp. 489 ◽  
Author(s):  
Samuel Spring

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