Conservative Leader Wants To Bring Ch. 11 To U.K.

Law360, New York (July 15, 2008, 12:00 AM EDT) -- The leader of the Conservative Party in the United Kingdom has proposed instituting a provision for bankruptcy protection similar to the United States' Chapter 11, an idea that has met with a chilly reception from his political opponents.

Businesses in the U.K. need the “breathing space” afforded by the U.S. bankruptcy system, and the British practice of liquidating failing businesses has too many negative effects, David Cameron said in a speech Tuesday.

There is currently no way for U.K. companies to engage in court-supervised restructuring. The...
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