CBIL members participate in Insolvency Law Reform discussions

Insolvency academics at the Nottingham Law School played host recently to a Japanese delegation led by Professor Toshikazu Fujimoto of the Graduate School of Law at Osaka University.

Insolvency academics at the Nottingham Law School played host recently to a Japanese delegation led by Professor Toshikazu Fujimoto of the Graduate School of Law at Osaka University. The purpose of the visit was to gather information on the turnaround and restructuring mechanisms in the United Kingdom for a study feeding into the proposed law reform process in Japan. Before coming to Nottingham, the delegation also travelled to the United States, where they met noted insolvency academics, judges and policy makers.

According to Professor Fujimoto, Japanese insolvency law has had to adapt, in the post-Millennial period, to ongoing and periodic financial crises. Various measures have been introduced to improve the rate at which businesses are rescued with varying degrees of success. The current reform project seeks to build on this and further improve the chances of businesses in financial difficulties. This will entail looking at measures that work upstream at the pre-insolvency phase as well as turnaround and informal workout mechanisms that permit restructuring operations to be carried out successfully at an early stage. Inculcating a culture of early rescue among debtors would also stimulate more creditors to have faith in insolvency processes and cooperate in the turnaround of their debtors.

As such, particular interest is focused on procedures in the United Kingdom such as schemes of arrangement, in addition to the more general insolvency procedures of corporate voluntary arrangements and administration. Professor Rebecca Parry, a noted expert on comparative insolvency law, was able to share her knowledge of the points of difference in practice in the UK and US legal systems, while Dr Alexandra Kastrinou, an expert on Greek and French law, pointed out similarities and differences in the UK and European approaches towards early intervention in insolvency. Dr Paul Omar was also on hand to share his experience of trends in global insolvency law reform that might be of benefit for the project. All are members of the Centre for Business and Insolvency Law, which has gained a reputation worldwide for the promotion of research and teaching in insolvency.

CBIL members participate in Insolvency Law Reform discussions

Published on 16 September 2014
  • Category: Nottingham Law School

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