Partner Byron Moldo Authors Article on Substantive Consolidation for GGI Global Alliance
Byron Z. Moldo, a Partner in ECJ’s Bankruptcy, Receivership and Creditors’ Rights Department, was recently published in the GGI Global Alliance’s INSIDER Newsletter. His article, “Substantive Consolidation, its Application, and the Authority,” which appeared in the September 2019 issue, summarizes the concept of substantive consolidation and analyzes the factors to consider and the situations when it is appropriate for a court to order its use. As Byron discusses in the piece, “[b]ecause it allows general unsecured creditors of various entities to share pro rata in a common pool of assets, substantive consolidation simplifies the processes of liquidation or reorganization, and is therefore fair and reasonable when presented to judges and creditors.” However, he warns that this tactic can sometimes lead to unfair treatment of creditors and courts should be mindful when determining if substantive consolidation is likely to prove more harmful than beneficial in a particular case.
Click here to read Byron’s full article.
GGI (Geneva Group International) is a worldwide alliance of well-established and experienced accounting, consulting and law firms that are committed to providing clients with specialist solutions for their international business requirements. Its newsletter contains articles on current topics of interest written by experienced professionals from around the world.
