Vol 21 (2024) - Issue 3

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A Model for a New Approach to Distribution During Corporate Insolvency - Part One

Synopsis
This four-part article series presents potential proposals for reforms to distribution during English corporate insolvencies. It follows the author’s previous empirical study which showed that returns to creditors during distribution are extremely low and costs of the procedure disproportionately high. Based on those findings, this series discusses potential areas for improvements and explores the use of technology, registration, and insurance during distribution. The reforms proposed by the author are dubbed the 'New Approach'.
Part One introduces the proposal for reforms and discusses key mechanisms while Part Two goes into the details of the key mechanisms. Part Three explores to impact of the proposal on the different classes of creditors whereas Part Four addresses certain drawbacks of the proposal.