This incisive book critically explores the principles, purpose and application of corporate rescue in order to bring new significance to rescue theory. Responding to key legislative developments and recent case law, it examines major insolvency theories and establishes which theoretical principles are prominently applied in practice, and whether these principles have affected the drivers of policy consideration.

An original book offering a unique theoretical approach, Re-examining Insolvency Law and Theory analyses the important role that legal theory plays in the development of insolvency law. It explores how law and theory are able to respond to issues of financial distress in the 21st century and questions how insolvency law could develop to address contemporary challenges.

. . . a highly readable and informative text and an excellent addition to insolvency scholarship. . . In their entirety, the chapters of Corporate Rescue Law An Anglo-American Perspective represent one of the most incisive and relevant treatments of comparative insolvency regimes to date. . . This book is an absolute boon: it provides the reader with a mass of legal and practical insights into the workings of two ostensibly divergent systems and challenges received wisdom in a fluent and persuasive manner. Not only are legal differences examined through the lens of practice, but also commercial, philosophical and social responses to failure are considered and highlighted as possible drivers of those real distinctions that do exist. Professor McCormack has produced an exceptional work that should be required reading for academics, practitioners and policy makers alike, and is to be warmly congratulated. Sandra Frisby, Banking and Finance Law Review The issues are well chosen. They are easily the most important aspects of any corporate rescue law. The careful analysis of the technical provisions, the incorporation of the extensive scholarship on the two corporate rescue regimes and the reference to practice in the real world all help to make these chapters an indispensable tool for any scholar wishing to gain a better understanding of the similarities and differences of English and American corporate rescue laws. . . This monograph could not have come at a better time. . . The comparative account in this book will help law reformers, judges and scholars to have a better grasp of the issues and appreciate better how the two systems have dealt with them. . . Comparative law has a critical role to play in promoting mutual understanding and respect. It is hoped that this monograph will help in that respect. Wee Meng Seng, Singapore Journal of Legal Studies This book offers an unprecedented and detailed comparative critique of Anglo-American corporate bankruptcy law. It challenges the standard characterisation that US law in the sphere of corporate bankruptcy is pro-debtor and UK law is pro-creditor , and suggests that the traditional thesis is, at best, a potentially misleading over-simplification. Gerard McCormack offers the conclusion that there is functional convergence in practice, while acknowledging that corporate rescue, as distinct from business rescue, still plays a larger role in the US. The focus is on corporate restructurings with in-depth scrutiny of Chapter 11 of the US Bankruptcy Code and the UK Enterprise Act, and offers other comparative oversights. Integrating theoretical and practical insights, this book will be of great interest to academics and practitioners, and also to policymakers in the DTI, Insolvency Service and regulatory bodies.

Businesses are considered to be important drivers of growth, innovation, novelty, change, knowledge and wealth. Emphasis on rescue and rehabilitation of companies in financial distress is therefore deemed warranted. We label this trend as “Corporate Rescue Culture”. However what kind of economic realities and forces need to be taken into account and which preconditions need to be dealt with if rescue and rehabilitation of a distressed company is facilitated? Rescuing businesses is embedded in the forces of capitalism. Capitalism's focus is on creation of value. But how is value or wealth created? And how do markets and firms fit into this system? In this article we try to interpret the forces of capitalism and its impact on the corporate rescue culture. Our main conclusion is that failure is much more structural than assumed. Businesses and competitive advantage are in general temporary and changed, failed and dissolved businesses are the essence of capitalism, reasons not to interfere and to facilitate business rescue. The main dogma of corporate rescue identical with the conventional theory of the firm is that a business is a stable, fixed, successful, continued, independent and worthwhile entity. However, (bundles of) resources “flow” through the economic cosmos; are attracted and repelled by firms, but they cross firm boundaries; particularly knowledge.

China has recently entered a significant stage in its economic transition with the introduction of a new and seemingly sophisticated bankruptcy law drawing inspiration from mature insolvency systems. However, this new law is likely to face significant challenges within its implementation due to weaknesses in the countries legal and social infrastructure. China's New Enterprise Bankruptcy Law clearly presents the structure of China’s reformed legal bankruptcy system by introducing the framework and analyzing typical cases which have been or are being heard since the new bankruptcy law was operational. Written by Chinese experts with a professional interest and specialist knowledge of insolvency law, this volume serves as an indispensable guide for academics and researchers in the area, as well as practitioners and professionals involved with Chinese business law.