Now raising intellectual capital

Back to the future for debt panel proposal


MALAYSIAAnything that saves time and money in the restructuring of debt sounds like a good idea — particularly given there are likely to be a lot more bad loans that will need sorting out in the coming months and years. 

London bankers working in this area have begun pushing an idea to by-pass the courts in the restructuring of billions of pounds worth of debts.

Like many of the ideas currently being kicked around on regulation — and sorting out the mess left by the financial crisis – it seems to be a case of back-to-the-future. The idea is apparently for the establishment of a panel with echoes of the informal London Approach operated by the Bank of England before the Financial Services Authority (FSA) took over the regulation of banks.

Reuters restructuring correspondent Tom Freke has got details from his sources who are pushing the restructuring panel as an alternative to British government proposals to make UK insolvency rules more like the U.S. Chapter 11 process.