'Forum shopping' frustrates European high yield investors

Jessop, Pimco: forum shopping an issue for high yield investors

European corporate bond investors have expressed concern that struggling companies are increasingly moving abroad to avoid paying back creditors.

Over the past year a number of issuers have moved their operations to different jurisdictions in order to take advantage of more flexible bankruptcy laws, a process known as “forum shopping”.

Under EC insolvency regulation, a company facing a possible restructuring need only move its head office, or “centre of main interests” (COMI), to another country

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