Overview of Corporate Restructuring and Insolvency Law and Practice in England and Wales

Abstract

An examination of the development of the law and practice in other jurisdictions is a useful exercise in the formulation of new laws. English insolvency law has a long and established history dating back to the nineteenth century. The English insolvency laws up until 1986 were considered very favourable to creditors, but in 2002, changes were introduced1 which promoted a rescue culture more favourable to debtors. Despite this change, it continues to be the case that most restructurings are achieved in England, without formal recourse to the formal insolvency laws. Instead, insolvency laws are used as an incentive for restructurings to take place outside of the formal procedures, and creditors and debtors are therefore encouraged to participate on a consensual basis. Where consensus is impractical or impossible, restructurings are facilitated by the various tools available within the insolvency and companies legislation.