NEW YORK, Nov 14 (Reuters) – U.S. bankruptcy code changes enacted last month make it more difficult for debt-strapped companies to restructure on their own terms, but the rising role of hedge funds may be offsetting those challenges, experts said at a conference on Monday.
The sweeping bankruptcy code changes, instituted on Oct. 17, impose for the first time a two-year limit for companies to formulate a restructuring plan, a period that some say is too short for large companies.
But the new rules is expediting the growing role of hedge funds, which in recent years have stepped up investments into distressed and bankrupt companies, experts said at a New York conference at Benjamin N. Cardozo School of Law.
