Conclusion and Final Remarks

Abstract

As this book has shown, restructuring has assumed heightened importance as a means of resolving financial distress for viable businesses. Indeed restructuring (whether as an aspect of bankruptcy law, company law or even informally), will continue to be relevant so long as the phenomenon of financial distress exists, whether as a result of internal factors such as faulty corporate strategy, the indiscretions of extant management, or other exogenous factors relating to cyclical economic downturns. In such situations where the fortunes of the business begin to dwindle, the existence of a restructuring regime suited to facilitating the continuation of the distressed debtor as the process of restructuring is underway. Efforts continue across jurisdictions to fine-tune restructuring regimes by strengthening bankruptcy legislations, to make them the more restructuring-friendly. What is often still in debate is the exact shape which the reform should take. For instance, questions may arise, regarding whether the pre-distress management be retained in place, or whether a new official is appointed I their place, or whether a mid-course that allows the management to remain in place but supervised by an official, may be appropriate. Or, as the book has largely focused on, whether new financing is to be incentivized by prescribing incentives as part of the restructuring regime or allowing market participants to sort out this issue for themselves.