Vol 18 (2021) - Issue 3

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Corporate Rescue in the UK: Solutions from Something Old, New, and Borrowed?

Synopsis
To think that UK's economy shall be 'steady as her goes' in 2021 is not mindful of the huge challenges that lies ahead. Given COVID-19 and many economic challenges facing UK and the world economy, ensuring corporate rescue should be the first option instead of an alternative to liquidation would be critical for businesses to survive and millions more who depends on them. In order for companies in financial distress to be rescued getting the right laws or the law to be right is imperative. This might mean more law reforms that puts corporate rescue over liquidation should be considered. The question is how.
This article shall discuss and assess prevailing corporate rescue procedures in the UK, including the existing rules and the recent legislative amendments. It will also explore the merits of the bank resolution regime and the possibility of transplanting certain key attributes to inform ways to further enhance corporate rescue procedures. The critics might point to the fact that much had already been done, this paper argues that more can still be done. The alternative is perhaps too daunting, where many businesses and sectors in the UK shall be withered away and left to liquidate, further eroding the engines of UK's economy into the abyss.