Corporate Insolvency Regimes
Lead by Jannis Poetzsch-HeffterThe comparative analysis of corporate insolvency law concerns plan voting schemes and priority regimes. Debt restructuring implies financial rescue in a situation of financial distress. However, it might also serve more broadly as a turning point—a reorientation of the corporation and its role within economy and society. Plan voting schemes, e. g. voting rights, majority thresholds, cram-down, establish the procedural conditions under which stakeholders can collectively agree on, or be bound to, a restructuring plan. Since insolvent firms cannot fully satisfy all creditor claims, legal systems must choose how to rank and distribute remaining assets among its creditors. Priority decisions involve the treatment of a wide range of debt relations, including derivatives, secured credit, employee wages, taxes, or new financing granted during restructuring. The comparative sample reveals the diverse social rationalities behind insolvency law and how legal orders resolve debt conflicts between debtor, creditors and further stakeholders. Ultimately, the analysis highlights the reflective capacity of insolvency law: priority regimes and plan voting schemes mediate and balance competing social rationalities.