Covid-19 tips balance further in favour of shareholders over creditors
The raised bar for proving insolvency is making creditor protection harder.
THE S&P 500 has rebounded by more than 30 per cent since its March nadir, breaching its five-year pre-Covid high, in seeming defiance of the bad news linked to Covid-19.
Is the market's upward trajectory in these trying times so inexplicable? Commentators point to spooked investors not knowing where else to park their liquidity, and to tech stocks being the major beneficiaries. But one other factor may be at play: shifts in the creditor-debtor tug of war that have been brought into starker relief.
The company as we know it
The concept of a company is simple enough at its core. A separate legal entity from its shareholders, a company allows businessmen to conduct business through a c…
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Volkswagen workers vote decisively to unionise in Tennessee
Sony deal for Paramount would draw added regulatory scrutiny
Bitcoin 'halving' has taken place: CoinGecko
Lululemon to shutter Washington distribution center, lay off 128 employees
Wall Street bonus rules return to regulatory agenda in third try
Honda to invest US$808 million in Brazil by 2030