Bankruptcy policy and surface transportation public-private partnerships: A comparative analysis of the U.S. and Europe

Abstract This paper explores bankruptcy legal frameworks as an explanation for perceived differences in U.S. surface transportation PPPs (or PPPs) outcomes compared to the European market. Through seven U.S. and eleven European PPP bankruptcy cases, the study provides some evidence that the U.S. legal framework, either Chapter 9 or 11 of the U.S. Bankruptcy Code, favors continuous facility operation through debt restructuring rather than asset liquidation. The case studies also highlight how European countries, particularly France and Spain, have adopted new legal frameworks mimicking U.S. Chapter 11, promoting debt-restructuring procedures to diminish the fiscal impacts associated with asset liquidation.