Comparative analysis of the regulation of distressed debt investment practices
PhD student: Mrs W.J. Bartstra
Promotor: Prof R.J. de Weijs
Duration: 1/9/2019 - 30/9/2025
The project explores the effects of distressed debt investment activity on capital providers - creditors and shareholders - of distressed corporate debtors. Distressed debt investment allows some creditors to opt out of insolvency proceedings by selling their claims, while the remaining creditors and shareholders are confronted with the purchaser of those claims: the distressed debt investor. This will likely give rise to conflicting interests between the capital providers. This project will analyze the measures that are taken in different legal systems to address these conflicting interests. These will then be compared against the background of a normative framework in order to decide which measures are best suited to strike a proper balance between the interests of the capital providers of an insolvent debtor.