Abstract
In contrast to the Australian model, the American approach to corporate reorganization is relatively ineffective. Not only is it slow, expensive, and administratively cumbersome, it also provides inefficient and otherwise inappropriate investment incentives and it frequently empowers the wrong party to make vital decisions. As a result, the American model fails to consistently achieve the primary goal of a corporate bankruptcy system-distinguishing those firms with long term potential viability from those firms without such prospects, and assuring continuance of the former and liquidation of the latter.
Recommended Citation
Lewis, Paul B.
(2001)
"Trouble Down Under: Some Thoughts on the Australian-American Corporate Bankruptcy Divide,"
Utah Law Review: Vol. 2001:
No.
1, Article 4.
Available at:
https://dc.law.utah.edu/ulr/vol2001/iss1/4