Debt restructuring and notions of fairness

Sarah Paterson

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This article examines concern for fairness in the way in which loss is distributed when a company or financial institution facing financial difficulties is restructured. It shows how this concern is often grounded in loose notions of fairness, or generalisations from one situation to another, rather than in detailed analysis. Adopting an interdisciplinary approach, it builds an analytical frame for the fairness debate in debt restructuring. It shows why rigour is important in identifying fairness concerns, in weighing them against other considerations, and in applying concerns which arise in one scenario to another, and illustrates the types of policy mistake or policy incohernece which can arise if this is not done.

Keywords: Debt restructuring; reorganization; corporate insolvency; corporate bankruptcy; fairness. (search for similar items in EconPapers)
JEL-codes: J1 (search for similar items in EconPapers)
Date: 2017-07-13
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Published in Modern Law Review, 13, July, 2017, 80(4), pp. 600-23. ISSN: 0026-7961

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:68559

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