Corporate Insolvency Reforms in England: Rescuing a “Broken Bench”? A Critical Analysis of Light Touch Administrations and New Restructuring Plans

Common wisdom suggests that corporate insolvency frameworks should be efficient, flexible and adaptable. Measuring such benchmarks is a challenging task better left to economists. This doctrinal paper assumes that the English corporate insolvency system can reach these goals if it offers a balanced and reasonably broad array of options to the debtors in distress. These options should include liquidation of assets, rescue of the business (or part of it) and rescue of the company (and as much of its business as possible). The recently enacted Corporate Insolvency and Governance Act 2020 addresses some of the alleged inefficiencies of the English framework. One of the key innovations is the introduction of a new restructuring plan. This paper assesses the need for such procedure in light of the established practice of light touch administrations.