Dissertation
Intra-group financing and enterprise group insolvency
On 14 November, Ilya Kokorin defended the thesis 'Intra-group financing and enterprise group insolvency: problems, principles and solutions'. The doctoral research was supervised by Matthias Haentjens and Reinout Vriesendorp.
- Author
- Ilya Kokorin
- Date
- 14 November 2023
- Links
- Intra-group financing and enterprise group insolvency
What do Lehman Brothers, Nortel Networks and Oi Brazil have in common, apart from the fact that they were or remain large multinational enterprise groups that at some point became insolvent? They are characterized by the integrated nature of their business, facilitated through elaborate networks of intercompany financial arrangements. Some of these arrangements “perforate” limited liability (eg cross-guarantees), while others closely tie the fates of separate group entities (eg intra-group loans, centralized cash management). As a result, the idea of entity separateness, underpinning modern insolvency law, hardly reflects present-day economic and legal realities. This thesis examines typical intra-group financial transactions and explores their influence on and treatment in insolvency and restructuring of corporate groups. It explains the problems, discusses underlying legal principles, and offers targeted solutions, based on a thorough analysis of modern commercial practices and legal tools from three leading restructuring forums – the UK, the USA and the Netherlands.