Reaching down to preserve and recover assets in a chain
Christa Anthony and Martin Kenney analyse “reaching down” to preserve and recover assets held at the bottom of a vertically-stacked corporate chain.
This article is taken from the latest issue of The Company Lawyer (subscribe here)
Martin Kenney and Christa Anthony explore an asset preservation and recovery strategy known as “reaching down”, from the top to the bottom of a vertically-stacked corporate structure, in a brand new article for the journal The Company Lawyer.
In the piece, they outline a strategy to target assets at the lower levels of a fraudulent structure, often indirectly held or controlled by a recalcitrant obligor at the top.
They examine the practical challenges of holding difficult debtors or suspected fraudsters accountable, particularly those who hide behind complex, vertically-layered corporate entities.
These asset protection fortresses are frequently spread across multiple jurisdictions, complicating enforcement efforts.
The primary aim of this strategy is to help creditors mitigate the risk of asset flight from the lower levels of a layered asset protection construct.
The article also highlights the effectiveness of appointing asset preservation receivers over the shares at the top of such structures, which can play a crucial role in safeguarding the value often found at the bottom of the corporate chain.
View the full piece by clicking on the PDF
*This material was first published by Thomson Reuters, trading as Sweet & Maxwell, 5 Canada Square, Canary Wharf, London, E14 5AQ, in The Company Lawyer and is reproduced by agreement with the publishers. For further details, please see the publishers’ website.
