Rethinking corporate rescue in the UK in light of the growing distressed debt market

Alwallani, A. (2025) Rethinking corporate rescue in the UK in light of the growing distressed debt market. PhD thesis, University of Reading. doi: 10.48683/1926.00123002

Abstract/Summary

Over the past several years, the structure of the finance industry has experienced significant changes. There has been a noticeable shift from hold-to-maturity debt investment strategies toward more active trading strategies. A new and diverse range of private investment funds have emerged, driven by the opportunities to generate returns through these trading strategies. Their presence is becoming increasingly visible in insolvency situations. In fact, it is argued that these investors are gradually displacing traditional lenders as the primary source of financing for distressed companies. This rise in involvement has coincided with a growing focus on the control and administration of the insolvency process, as well as the efficiency and adequacy of the insolvency system in achieving its intended objectives. This thesis begins by examining the concerns that the UK’s corporate insolvency system was originally designed to address. It then proceeds to trace the development of the system to address the issues prevailed in a finance market dominated by a small group of homogeneous banks. The thesis examines originally collected quantitative and qualitative data to provide evidence for the emergence of concerns related to the role of distressed debt investors in situations of distress. This thesis argues that the existing insolvency framework lags behind current trends evident within corporate finance and insolvency practice. In response, the thesis concludes by recommending reforms to improve the functioning of the system.

Item Type	Thesis (PhD)
URI	https://centaur.reading.ac.uk/id/eprint/123002
Identification Number/DOI	10.48683/1926.00123002
Divisions	Arts, Humanities and Social Science > School of Law
Date on Title Page	2024
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