jurisprudence
now holds that shareholder interests must be taken into account in a restructuring plan
when it can be shown that these interests have a value. The issue seems to be more on
how to determine the value of these interests. Whereas some favour a purely accounting
analysis of shareholders equity, others maintain that the value of the shareholder’s
interests is directly related to the nature of the proposed restructuring plan. As such, the
more the plan focuses on maintaining the insolvent company as a going concern, the
more the shareholder’s interests should be considered. This last approach is the best
course of action. Provided that the value of the company is significant, notwithstanding
its insolvency, which may be due to cyclical events and poor management, it would be
unfair and inequitable to determine and treat the shareholder’s interests solely on the
basis of a bankruptcy scenario, which in all likelihood will not materialize. It would be
unfair and inequitable to overlook the business continuity projected by the restructuring plan.