Vol 21 (2024) - Issue 4

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A Model for a New Approach to Distribution During Corporate Insolvency – Part Two

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 of this article series introduced the proposed New Approach while Part Two discusses the key mechanisms of the reforms. This is namely the proposed registration regime, application of developing technologies, and the use of insurance to protect vulnerable parties during insolvency.