The COVID-19 pandemic has thrust many good businesses into financial distress. The welfare implications are significant. A number of dramatic adjustments have already been made to insolvency laws around the world. Countries hope that these will enable viable businesses to weather the storm. More such adjustments will undoubtedly follow. But how will we know whether these measures are effective? By what means might we measure effectiveness? Are there other forms of intervention outside the conventional insolvency law ‘toolbox’ that lawmakers could usefully exploit? For example, should the contractual rights of creditors and other counterparties be directly (temporarily) adjusted? And what might we learn from all of this for the future development of insolvency and other debtor-creditor laws, both within and outside times of systemic crisis?
These questions will be explored in an interdisciplinary 18-24 month project being spearheaded by Professor Horst Eidenmüller, Associate Professor Kristin van Zwieten and Professor Oren Sussman. Consistent with the Commercial Law Centre’s general approach, the project will draw on and integrate insights from leading practitioners and the judiciary, and consider developments outside Europe (including in key emerging markets) as well as within it.
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