DO NOT SHOOT THE PIANIST! PROTECTION FOR INTERIM FINANCING OF DISTRESSED COMPANIES
DO NOT SHOOT THE PIANIST! PROTECTION FOR INTERIM FINANCING OF DISTRESSED COMPANIES

Summary/Abstract: The increasing use of alternative methods of resolving insolvency disputes has been associated with the need to reduce the number of insolvency cases and ensure stability in the business market. In the last decade the reform of the insolvency legislation enacted the evolution of the concept of insolvency from bankruptcy to that of “Corporate Rescue Culture”. To overcome the difficulties it faces, a distressed company needs additional financing. The success of reorganization is related to the possibility of financing the business, but once the business meets difficulties, the access to money becomes critical. In order to encourage creditors to finance distressed companies, in many states the legislation offers different possibilities to protect or even to give super-priority in repaying loans to creditors who, in good faith, help troubled companies to continue their business.

• Details
• Contents