Court-Supervised Restructuring of Large Distressed Companies in Asia

Law and Policy

Wai Yee Wan

• Publisher: Hart Publishing
• Year: 2022
• Print ISBN: 9781509952373
• eBook ISBN: 9781509952342
• Edition: 1
• Topic: Law
• Subtopic: Comparative Law
• Index: Law

This book provides an in-depth analysis of 4 economically significant Asian jurisdictions: Mainland China, India, Hong Kong and Singapore. These jurisdictions have recently either reformed – or are considering reforming – their corporate restructuring laws to promote regimes conducive to restructuring financially distressed, but otherwise economically viable, companies. Mainland China, India, Hong Kong and Singapore continue to adhere to a framework that requires the court's final approval but draw references from Chapter 11 of the Bankruptcy Code 1978 in the United States and/or the schemes of arrangement in the United Kingdom. However, the institutional and market structures are very different in Asia; in particular, Asia has a far higher concentration in shareholdings among listed firms, including holdings by families and the state, and a different composition of creditors. The book explains how, notwithstanding the legal transplantation, corporate restructuring laws in these Asian jurisdictions have adapted and evolved due to the frictions in shareholder-creditor and creditor-creditor relationships, and the role of the state in resolving non-performing loans and financial distress of state-owned enterprises which are listed, or which issue public debt. The study argues that any reforms must go beyond professionalising the insolvency professionals and the judiciary but must be designed to address fundamental issues of corporate governance, bank regulation and enforcing non-bankruptcy rules. It offers invaluable insights for academics and policy makers alike.

Table of contents

• Cover
• Dedication
• Title Page
• Preface
• Acknowledgements
• Contents
• List of Abbreviations
• References to Judicial and Policy Guiding Documents in Mainland China (Bilingual)
• List of Tables
• List of Figures
• Table of Cases
• Table of Legislation and Other Materials
• 1. Introduction and Theoretical Framework
• 2. Development of Corporate Restructuring Law in Four Asian Jurisdictions
• 3. The Agency Costs of Manager–Creditor and Shareholder–Creditor Relationships in Restructuring
• 4. The Agency and Coordination Costs of Creditor–Creditor Relationships in Restructuring
• 5. Managing Non-Performing Loans and their Impact on Agency and Coordination Costs in Two Emerging Jurisdictions
• 6. Insolvency Practitioners as Gatekeeper Intermediaries
• 7. Role of the Courts in Court-Supervised Restructurings
• 8. Relationship between Restructuring Law, Enforcing Contracts and Directors’ Duties
• 9. Restructuring Law, Implications for Reform and Conclusion
• Appendices
• Bibliography
• Index
• Copyright Page