The legal ruling is complex and would need to be considered on a case by case basis but the threat of this approach may assist in bringing about a negotiated solution.

In regard to Property Developers, the courts have been particularly unimpressed with their business plans due to their over optimistic assumptions and timescale for recovery.   As a result they have been almost universally dismissed.

One key ingredient that the courts now look for is fresh capital.  Again they are taking a harder line from an early stage and will not grant protection just on the basis of hope alone. 

Bottom line, you should consider having negotiations on new capital injection well advanced if possible prior to seeking court protection.