The recent filing for Chapter 11 protection by Latvian airline Air Baltic has reignited the debate over the attractiveness of the US debt restructuring procedure, including for European companies.
Protection against creditor actions, access to dedicated financing (Debtor-in-Possession financing), cramdown mechanisms and, above all, the speed and flexibility of the procedure are among the key distinguishing features of Chapter 11.
Although many of these mechanisms are now also reflected in the Italian concordato preventivo (composition with creditors) procedure, significant differences remain between the two systems, particularly in terms of timing and operational flexibility.
Cristian Fischetti, Partner at LEXIA, explores these issues in an article published by Borsa&Finanza, comparing the US Chapter 11 procedure with the Italian concordato preventivo and examining the crucial role of timing in managing corporate crises and debt restructuring processes.
Read the full article on Borsa&Finanza >
