Chapter 11 bankruptcy protection is no longer a total haven for ailing businesses. In the biggest overhaul of its bankruptcy legislation in 30 years, the US last year recast Chapter 11 to enhance the rights of creditors.

Delivered to a cacophony of criticism of weak and illogical drafting, the thrust of the legislation remains the protection of the debtor business so it can rebuild itself as a going concern. But a company's management will no longer have the freedom it used to have. Instead, they are likely to be forced towards greater accountability and co-operation with creditors.