Overview
- Provides a comparative study of approaches to new financing, linking three most important market jurisdictions (US, UK, Germany)
- Tracks ongoing business insolvency reforms and the new financing component
- Provides comparative perspectives on lender capture through new financing
- Highlights the emerging role of the distressed debt market as provider of new financing for restructuring
- Provides policy recommendations on restructuring reform for frontier markets like Nigeria
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Table of contents (7 chapters)
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Front Matter
Keywords
- Insolvency
- New financing
- Restructuring
- Distressed dept market
- Hedge funds
- Private equity
- Comparative Law
- Investor
- NPL
- Law reform
- Nigeria
- Corporate bankruptcy
- Corporate finance
- Corporate governance
- Banking and Finance
- Dept restructuring
- Frontier markets
- SME
- Small and medium-sized enterprise
- non-performing loan
About this book
This book focuses on the restructuring of distressed businesses, emphasizing the need for new financing during the restructuring process as well as during relaunch, and examines the role of law in encouraging creditor confidence and incentivizing lending. It describes two broad approaches to encouraging new finance during restructuring: a prescriptive one that seeks to attract credit using expressly defined statutory incentives, and a market-based one that relies on the business judgment of lenders against the backdrop of transaction avoidance rules.
Securing new financing for a distressed business is a critical part of successful restructuring. Without such financing, the business may be unable to meet interim liquidity constraints, or to implement its restructuring plans. This book addresses related questions concerning the place of new financing as an essential component of restructuring.In general terms, the book explores how statutory interventions and the courts can provide support with contentious issues that arise from the provision of new financing, whether through new financing agreements or through distressed debt investors, who are increasingly gaining prominence as sources of new financing for distressed businesses. It argues that courts play a key part in preventing or correcting the imbalances that can arise from the participation of distressed debt investors. In this context, it critically examines the distressed debt market in emerging markets like Nigeria and the opportunity presented by non-performing loans, arguing that the regulatory pattern of market entry may dis-incentivize distress debt investing in a market that is in dire need of financing.
The book offers a fresh and comparative perspective on restructuring new financing for distressed businesses by comparing various approaches (primarily from the US, UK and Germany) and drawing lessons for frontier markets, with particular reference to Nigeria. It fills an important gap in international comparative scholarship and discusses a living problem with both empirical and policy aspects.
Authors and Affiliations
Bibliographic Information
Book Title: New Financing for Distressed Businesses in the Context of Business Restructuring Law
Authors: Sanford U. Mba
DOI: https://doi.org/10.1007/978-3-030-19749-0
Publisher: Springer Cham
eBook Packages: Law and Criminology, Law and Criminology (R0)
Copyright Information: Springer Nature Switzerland AG 2019
Hardcover ISBN: 978-3-030-19748-3Published: 10 July 2019
Softcover ISBN: 978-3-030-19751-3Published: 14 August 2020
eBook ISBN: 978-3-030-19749-0Published: 29 June 2019
Edition Number: 1
Number of Pages: XI, 285
Topics: Private International Law, International & Foreign Law, Comparative Law , Business Finance, Emerging Markets/Globalization, European Law, Commercial Law