The impact of insolvency on corporate contracts: a comparative study of the UK and US insolvency law regimes
Udofia, Kubianga Michael (2014) The impact of insolvency on corporate contracts: a comparative study of the UK and US insolvency law regimes. PhD thesis, University of Nottingham.
Parties who contract at arm’s length are bound by the terms of their contracts, provided the contracts do not contravene a rule of law or public policy. The commencement of formal insolvency proceedings may however limit the ability of a debtor to perform its pre-petition contractual obligations, resulting to liabilities to creditors. Accordingly, a formal insolvency procedure ensures an orderly and efficient resolution of the debtor’s affairs -- maximising realisations to creditors or rescuing the corporate debtor as a going concern. To achieve this purpose, unilateral contract enforcement efforts and rights are replaced by a mandatory regime characterised by collectivity and equality in treatment of similarly situated creditors.
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