Why might an English restructuring plan be used by companies outside the UK?. (RI §427061)  

This paper highlights the reasons why a company might choose to use an English Part 26A Restructuring Plan, which is closely modelled on the requirements contained in Directive (EU) 2019/1023 on preventive restructuring frameworks, rather than a broadly equivalent procedure in its own jurisdiction. The paper focuses on (i) the availability of a significant body of existing precedents, (ii) flexibility as to what can be proposed in a Plan, (iii) the relative weakness of out of the money “non-critical” creditors, (iv) the comparative speed and predictability of the Plan process and (v) the fact that a Plan may be the only way of restructuring English law liabilities. It is noted that the law in this area is developing and that a recent Court of Appeal judgment may have implications for the timing and predictability of Plans.

I. BACKGROUND TO THE INTRODUCTION OF THE PLAN. II. THE APPLICABILITY OF SCHEME PRECEDENTS TO PLANS. III. FLEXIBILITY AS TO WHAT CAN BE PROPOSED IN A PLAN. IV. THE REQUIREMENTS FOR CCCD AND THE POSITION OF “NON-CRITICAL” CREDITORS. V. THE RELATIVE PREDICTABILITY OF PLANS. VI. TIMING CONSIDERATIONS.VII. WHEN IT MAY BE NECESSARY TO USE A PLAN -THE IMPACT OF THE RULE IN GIBBS.VIII. FUTURE DEVELOPMENTS.

Palabras clave: Part 26A Restructuring Plan; Scheme of Arrangement.;