INSOL International What makes a good insolvency regime INSOL International What makes a good insolvency regime? Richard Heis, Partner, KPMG, London INSOL Executive Committee Helsinki 25 August 2015

Something that can cope with this …

All the way to this …

Debtor – focused regimes Chapter 11 Most continental European regimes China and Japan

Creditor – focused regimes UK Most Commonwealth countries

State – controlled regimes Bank resolution Criminal enterprises Critical infrastructure

Debtor-in-possession v. insolvency practitioner DIP IP Familiarity  Cost Independence Fraud Disruption “Chapter 33” problem

Court v. out of court processes Cost  Speed Fairness International recognition

Immediate process v negotiated process People business  Banks Value Preservation Best price ? Fairest outcome Transparency

Pre-packs Valuation/value break Management Marketing New structure Viability “show me the money” Information Phoenix transactions Good and bad pre-packs

Non-insolvency solution Debt-for-equity swaps Cramdown Excluded creditors Binding the minority Mechanism: By consent By court By vote Valuation issues Shareholder veto

International issues “regime change” Centre of main interest Other international tricks Co-operation/reciprocity Model law Territoriality v universalism v modified universalism

Questions

Thank you Presentation by Richard Heis

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