Missouri receivership law should not simply mimic the federal
Bankruptcy Code. At least one Court of Appeals has suggested
that the federal bankruptcy laws may preempt a state receivership
statute that goes too far in creating a collective procedure to
distribute assets to creditors. More important, however, bankruptcy
cases frequently take too long and are too expensive, thereby
delaying and reducing recoveries to creditors. By borrowing the
best parts of the Bankruptcy Code, such as its clear claims
processing and priority provisions, and avoiding some of its more
litigious parts, such as preference recovery statutes, a new
receivership statute will, in certain types of cases, permit a more
efficient redeployment of distressed corporate assets to productive
uses. There will always be instances where bankruptcy is
preferable: such as a true corporate reorganization or to liquidate
a large, complex business with assets in many states.
