Wolf Promoting an Effective Rescue Culture with Debt-Equity-Swaps?

A Comparative Study of Restructuring Public Companies in Germany and England
1. Auflage 2015
ISBN: 978-3-8452-5574-3
Verlag: Nomos
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, Band 7, 271 Seiten, Format (B × H): 153 mm x 227 mm

Reihe: Schriften zur Restrukturierung

The central question of this thesis is whether the restructuring instrument of a debt-equity swap pursuant to § 225a InsO has contributed towards the making of substantial progress towards a rescue culture in Germany – following the English rescue culture – and thereby strengthened the competitiveness of Germany as a location for restructurings. The comparative analysis discusses the economic, cultural and legal frameworks to implement debt-equity-swaps under German and English law. It specifically addresses the implementation of a (solvent) scheme of arrangement for financial restructuring, which has been a very popular instrument in recent years for German companies, however, it also raises questions about the recognition of the scheme’s effect in Germany. Finally, there is discussion of the extent to which the new insolvency norms are suitable to solve conflicts in corporate law.

Autoren/Hrsg.

Wolf, Annika

Fachgebiete

• Rechtswissenschaften Ausländisches Recht Common Law (UK, USA, Australien u.a.)
• Rechtswissenschaften Recht, Rechtswissenschaft Allgemein Rechtsvergleichung
• Rechtswissenschaften Allgemeines Verfahrens-, Zivilprozess- und Insolvenzrecht Insolvenzrecht, Konkurs, Unternehmenssanierung

Inhaltsverzeichnis

1;Cover;1
2;Chapter I Introduction and Background;24
2.1;1 Introduction;24
2.1.1;1.1 Setting the Scene;24
2.1.2;1.2 Definitions and Limitations;27
2.1.3;1.3 Research Question and Course of Examination;30
2.1.4;1.4 Research Methodology;32
2.2;2 Background;36
2.2.1;2.1 Insolvency Law in a Market Economy;36
2.2.2;2.2 Insolvency Theories;41
2.2.2.1;2.1.1 Creditors’ Bargain Theory;43
2.2.2.2;2.1.2 Bankruptcy-Policy Theory;44
2.2.2.3;2.1.3 Value-Based Theory;46
2.2.2.4;2.1.4 Team Production Theory of Bankruptcy Reorganisation;46
2.2.2.5;2.1.5 Risk-Sharing Theory;47
2.2.3;2.3 Summary;49
3;Chapter II Factors Affecting the Effectiveness of Restructuring Companies;51
3.1; Introduction;51
3.2;3 Rescue Culture versus Insolvency Culture;51
3.2.1;3.1 Legal Culture;53
3.2.1.1;3.1.1 Germany;55
3.2.1.2;3.1.2 England;56
3.2.1.3;3.1.3 Summary;59
3.2.2;3.2 The Stigma of Insolvency;60
3.2.2.1;3.2.1 Germany;60
3.2.2.2;3.2.2 England;61
3.2.2.3;3.2.3 Summary;62
3.2.3;3.3 Legal Competition versus Legal Harmonisation;63
3.2.4;3.4 Forum Shopping;68
3.2.5;3.5 Company Rescue: Business or Legal Entity?;76
3.2.5.1;3.5.1 Pro-Debtor or Pro-Creditor;77
3.2.5.2;3.5.2 Germany;78
3.2.5.3;3.5.3 England;81
3.2.5.4;3.5.4 Summary;82
3.3;4 Role of Governments and National Banks;82
3.3.1;4.1 Germany;83
3.3.2;4.2 England;83
3.3.3;4.3 Summary;90
3.4;5 Judicial Infrastructure: Courts and Administrators;90
3.4.1;5.1 Germany;91
3.4.1.1;5.1.1 Courts;91
3.4.1.2;5.1.2 Administrator;93
3.4.2;5.2 England;96
3.4.2.1;5.2.1 Courts;96
3.4.2.2;5.2.2 Administrators;97
3.4.3;5.3 Summary;99
3.5;6 Financial Markets and Corporate Finance;100
3.5.1;6.1 Germany;102
3.5.2;6.2 England;104
3.5.3;6.3 Summary;104
3.6; Conclusion;105
4;Chapter III Restructuring Companies using Debt-Equity-Swaps;107
4.1; Introduction;107
4.2;7 Informal versus Statutory Proceedings for Restructuring;107
4.2.1;7.1 Germany;110
4.2.1.1;7.1.1 Insolvency;112
4.2.1.2;7.1.2 Opening Insolvency Proceedings;113
4.2.1.3;7.1.3 Grounds for Insolvency;113
4.2.1.3.1;7.1.3.1 Insolvency (Zahlungsunfähigkeit);114
4.2.1.3.2;7.1.3.2 Imminent Insolvency (Drohende Zahlungsunfähigkeit);114
4.2.1.3.3;7.1.3.3 Over-Indebtedness (Überschuldung);114
4.2.1.4;7.1.4 Restructuring and Insolvency Proceedings;115
4.2.1.4.1;7.1.4.1 Liquidation;115
4.2.1.4.2;7.1.4.2 Business-Asset Sale;116
4.2.1.4.3;7.1.4.3 Insolvency Plan Proceeding;118
4.2.1.4.4;7.1.4.4 Self-Administration;133
4.2.1.4.5;7.1.4.5 Protective Shield Proceeding;138
4.2.2;7.2 England;145
4.2.2.1;7.2.1 Insolvency;145
4.2.2.2;7.2.2 Opening Insolvency Proceedings;146
4.2.2.3;7.2.3 Grounds for Insolvency;147
4.2.2.3.1;7.2.3.1 Cash Flow Test;148
4.2.2.3.2;7.2.3.2 Balance Sheet Test;148
4.2.2.4;7.2.4 Restructuring and Insolvency Proceedings;149
4.2.2.4.1;7.2.4.1 Winding-Up;150
4.2.2.4.2;7.2.4.2 Administrative Receivership;151
4.2.2.4.3;7.2.4.3 Administration;152
4.2.2.4.4;7.2.4.4 Pre-Pack Administration;154
4.2.2.4.5;7.2.4.5 Company Voluntary Arrangement;155
4.2.2.4.6;7.2.4.6 Scheme of Arrangement;157
4.2.3;7.3 Summary;159
4.3;8 Debt-Equity-Swaps to Restructure Public Companies;161
4.3.1;8.1 Opportunities and Risks involved in Debt-Equity-Swaps;162
4.3.1.1;8.1.1 Opportunities;163
4.3.1.2;8.1.2 Risks;164
4.3.2;8.2 Germany;165
4.3.2.1;8.2.1 Capital Decrease;166
4.3.2.2;8.2.2 Capital Increase;168
4.3.2.3;8.2.3 Participation of Shareholders and Creditors;170
4.3.2.3.1;8.2.3.1 Shareholders;171
4.3.2.3.2;8.2.3.2 Creditors;182
4.3.2.4;8.2.4 Contribution and Valuation of Claim, Differential Liability;183
4.3.2.5;8.2.5 Restructuring Privileges;187
4.3.3;8.3 England;188
4.3.3.1;8.3.1 Capital Decrease;189
4.3.3.2;8.3.2 Capital Increase;189
4.3.3.3;8.3.3 Participation of Shareholders and Creditors;191
4.3.3.3.1;8.3.3.1 Shareholders;191
4.3.3.3.2;8.3.3.2 Creditors;192
4.3.3.4;8.3.4 Contribution and Valuation of Claim, Differential Liability;192
4.3.3.5;8.3.5 Restructuring Privileges;193
4.3.4;8.4 Summary;193
4.4; Conclusion;195
5;Chapter IV Legal Competition and Forum Shopping for Debt- Equity-Swaps in Practice;196
5.1; Introduction;196
5.2;9 Competition of Insolvency Law – Migration for Forum Shopping;196
5.2.1;9.1 Deutsche Nickel;197
5.2.2;9.2 Schefenacker;198
5.2.3;9.3 Brochier;200
5.2.4;9.4 Migration is the Past – Negotiation is the Future?;203
5.3;10 Competition of Company Law – Negotiation for Forum Shopping;204
5.3.1;10.1 Tele Columbus;204
5.3.1.1;10.1.1 Jurisdiction by an English court over a German company?;205
5.3.1.2;10.1.2 Prerequisites for a Scheme of Arrangement Fulfilled?;206
5.3.1.3;10.1.3 English Court to Sanction the Scheme?;206
5.3.2;10.2 Rodenstock;207
5.3.2.1;10.2.1 Recognition of the Scheme of Arrangement?;209
5.3.2.2;10.2.2 Comparable Proceeding in German Law?;211
5.3.2.2.1;10.2.2.1 Recognition of Foreign Judgement or Procedural Law Approach?;211
5.3.2.2.2;10.2.2.2 Recognition of Foreign Insolvency Proceeding or Substantive Law Approach?;213
5.3.3;10.3 PrimaCom;215
5.3.4;10.4 APCOA Parking;217
5.3.5;10.5 Conclusion;220
5.4;11 Rescue Culture or Mean to an End?;220
5.4.1;11.1 Background Suhrk221
5.4.2;11.2 Discussion Suhrk228
5.4.3;11.3 Summary / Conclusion Suhrk233
5.5; Conclusion;234
6;Chapter V Summary and Conclusion;235
6.1;12 Summary;235
6.2;13 Conclusion;238
7; Bibliography;240