The Creditor Bargain Podcast is an initiative launched by Dr Akshaya Kamalnath to collect the views of prominent insolvency academics and practitioners on recent developments in the area.
Last week Dr Eugenio Vaccari, Lecturer in Company and Commercial Law at Royal Holloway, University of London, was invited to speak at 'The Creditor Bargain Podcast'. This is a series of interviews with prominent insolvency practitioners and academics edited and co-ordinated by Dr Akshaya Kamalnath, Senior Lecturer in Law at the Australian National University College of Law.
Most of the interview was based on a recent article published by Dr Eugenio Vaccari in International Company and Commercial Law Review (2020, vol. 31(12)), titled 'Corporate Insolvency Reforms in England: Rescuing a "Broken Bench"? A Critical Analysis of Light Touch Administrations and New Restructuring Plans'. Part of it made reference another article published by Dr Vaccari on pre-pack procedures, titled 'English Pre-Packaged Corporate Rescue Procedures: Is there a Case for Propping Industry Self-Regulation and Industry-Led Measures such as the Pre-Pack Pool?’ (2020, vol. 31(3) I.C.C.L.R.).
The first article highlights the revised restructuring plan introduced by the Corporate Insolvency and Governance Act 2020 in response to the coronavirus pandemic, and assesses whether such an innovation improves the system's flexibility. The article also examines the range of options available under the existing insolvency regime, case law on the adaptability of existing light touch administrations (LTAs), and whether the reforms risk jeopardising fairness and transparency.
The second article examines the operation of the pre-packaged corporate rescue procedures, and whether additional regulation is needed to support the work of industry-led organisations such as the Pre-Pack Pool while avoiding the risks of abusive use of pre-packs. In particular, this article discusses the role of pre-packs, the operation of the existing regime, the distinction between strategic and abusive filings, and potential reforms to strengthen the players' responsibilities.
In the interview, Dr Vaccari discusses the recent changes to pre-packs introduced by The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021, which entered into force on 30 April 2021. The purpose of the interview is to clarify the distinguishing features of the corporate restructuring toolkits available to companies experiencing financial difficulties in the UK, with the view of highlighting issues that have not been addressed by recent reforms.
