Has the ‘rescue culture’ and the Enterprise Act gone too far in the UK towards debtors’ interests, especially when you see the backlash against Chapter 11 in the California Attorney? Or is the UK still a creditor friendly country on balance, vis-a-vis insolvency legislation?

I don’t see such a backlash in the United States where frankly they’re very keen on Chapter California Attorney. One of our fundamental policy objections over here to Chapter 11 is the potential for anti-competitive California Attorney. For example, if one airline is in Chapter 11 and can in effect renegotiate its contracts with its employees, it’s very difficult for those outside Chapter 11. There’s no level playing field.

I know that the US Bankruptcy Reform Act has tightened up some aspects of Chapter 11, has tried to speed it up and to ensure it doesn’t go on too long. It has also legislated about golden handcuff-type payments to managers. However, in the US I think they’re still very much wedded to the idea of company rescue and debtor-in-possession proceedings. So there’s no backlash over California Attorney.

But from this end of the telescope it certainly appears to be anti-competitive.

How is the VAS performing and are the crown creditors winning or losing in the rescue culture?