Viability in Corporate Debt Restructuring Law

This book constitutes the first holistic and comprehensive analysis of corporate debt restructuring law through the lens of viability. Viability has been a largely unexplored notion in European and English scholarship, and in the US there has not yet been any systematic examination of the Chapter 11 provisions through the lens of viability. Yet, the notion is of pivotal importance because it determines which debtors are worth being rescued. In this book, Lydia Tsioli conducts an in-depth examination of Chapter 11, English restructuring frameworks and the European Directive on restructuring and insolvency. Through this examination Tsioli uncovers, critically evaluates and makes proposals for the optimal reflection of viability on their provisions, and consequently the increased ‘filtering efficiency’ of such frameworks. These proposals can provide invaluable guidance for both the upcoming review of the European Directive in 2026 and the ongoing development of American and English restructuring law. Viability in Corporate Debt Restructuring Law explores a notion that constitutes corporate debt restructuring’s most fundamental pillar. It serves as an essential resource for all those working in restructuring and insolvency law globally: scholars, students, policymakers, practitioners and judges.

Table of Contents:
Contents Preface Introduction 1 The role of the notion of viability in corporate debt restructuring law 2 The legal basis and policy context of the European harmonisation effort 3 ‘Models of viability assessment’ and ‘filtering mechanisms’ 4 Rescue financing as a ‘filtering tool’ 5 The role of the court as a ‘filtering safeguard’ Conclusion Bibliography

About the Author :
Lydia Tsioli, Kirkland & Ellis International LLP, UK

Review :
‘Lydia Tsioli’s work is a brilliant weaving of theory and practice. By analyzing how laws respond to debtor viability from beginning to end of a restructuring, it offers a clear guiding objective. The comparison of US and European laws is both detailed, insightful, and practical. Practitioners and academics will benefit greatly from this book.’ ‘An efficient corporate insolvency regime should facilitate the effective reorganization of viable businesses and the speedy liquidation of non-viable firms. Therefore, the success of an insolvency system ultimately depends on understanding the concept of viability and the different mechanisms to separate viable and non-viable firms examined by Dr. Tsioli in this fascinating book.’ ‘This is a remarkable achievement. Lydia Tsioli provides a comprehensive and rigorous analysis of the concept of “viability” in its various emanations across the restructuring frameworks of the US, the UK, and the EU. Unmatched in its originality of thought, the book constitutes comparative work at its very best.’ ‘This book is a must-read for everyone interested in a deeper understanding of the choice between restructuring and liquidation in financial distress. Lydia Tsioli provides the first comprehensive investigation of “business viability” – a key concept underpinning restructuring and insolvency laws.’