Rescue financing as a ‘filtering tool’

Lydia Tsioli ()

Chapter 4 in Viability in Corporate Debt Restructuring Law, 2025, pp 144-207 from Edward Elgar Publishing

Abstract: Chapter 4 dives deeper into a restructuring framework's inner structure by examining how rescue financing may act as a double-edged ‘filtering tool’. This means that, depending, inter alia, on the legal provisions regulating it, rescue financing may either enhance or damage a restructuring framework's filtration effect. To prove this, the chapter examines the American statutory model of rescue financing and highlights the filtering efficiencies/inefficiencies it may create. The chapter also finds, however, through examining a market-based model of rescue financing such as currently exists in the UK, that this, too, may not work effectively. This lays the groundwork for a discussion about a potential statutory regime, which in itself presents increased difficulties. Finally, the book also makes certain proposals for the European Directive.

Keywords: Rescue financing; Debtor-in-Possession; DIP; Financing; Statutory; Market-based model of rescue financing; Creditor control; Filtering tool; Filtering efficiency; Inefficiency (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035350254
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035350261.00014 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:24119_5

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().