North America: Insolvency/Bankruptcy/Re-Structuring

A comprehensive analysis examines the transformative period of insolvency and restructuring law between 2021 and 2025, revealing how doctrinal consolidation has reshaped the landscape in ways not seen since the 2009 statutory reforms. The authors explore critical lessons for legal practitioners and business clients about the importance of early evidentiary preparation and strategic stakeholder management in determining restructuring outcomes.

The BVI Commercial Court has clarified a longstanding practice regarding liquidator powers in compulsory winding-up orders, determining that court sanction requirements should not be automatically imposed. This judgment examines the statutory framework under the Insolvency Act 2003 and establishes that liquidators possess broad powers by default, with restrictions requiring case-specific justification rather than blanket application.

The so-called Texas Two‑Step is a restructuring strategy that uses Texas state divisional‑merger law to separate a company’s operating business from certain legacy liabilities, often those involving mass tort claims.