Models of viability assessment’ and ‘filtering mechanisms

Lydia Tsioli ()

Chapter 3 in Viability in Corporate Debt Restructuring Law, 2025, pp 93-143 from Edward Elgar Publishing

Abstract: As already pointed out in Chapter 1, the book's vision for an optimal restructuring framework entails a continual assessment of the debtor's viability throughout the entire restructuring process. Chapter 3 starts the discussion on how this could be achieved by first identifying the two possible models of viability assessment. It suggests that what matters most is the appropriateness of ‘filtering mechanisms’ employed in any chosen model of viability assessment, namely provisions that can ‘torpedo’ the restructuring in case a debtor's viability lapses. As such, the chapter conducts an extensive analysis of Chapter 11, where such mechanisms are most characteristically embedded and highlights the way in which viability, in its double meaning, constitutes the ‘litmus test’ of its filtering mechanisms. By using these conclusions as a comparative benchmark, the chapter subsequently turns to the European Directive, identifies those of its provisions that can serve as filtering mechanisms and provides concrete interpretation and reform suggestions on how such mechanisms’ filtration effect can be optimised through properly incorporating the notion of viability.

Keywords: Models of viability assessment; Filtering mechanisms; Filtration effect; Part A1; Insolvency Act 1986; Chapter 11 conversion; Dismissal; Chapter 11 stay relief (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035350254
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