Corporate Restructuring Plans - Pros, Cons & Case Law

Introduction

A restructuring plan under Part 26A of the Companies Act 2006 is quite similar to Chapter 11 Bankruptcy in the USA.

It was introduced during the COVID-19 pandemic because with decreased footfall in shops, gyms, and hospitality, otherwise successful businesses were finding it difficult to keep going.

A well thought out restructuring plan could prevent the collapse of a business, with some creditors or shareholders being forced to concede some of their rights in the greater interest of the company and all its creditors and shareholders.

To take advantage of a restructuring plan a company does not need to be insolvent but must be experiencing some degree of financial difficulty which the restructuring plan hopes to alleviate.

A new ‘cross class cram down’ provision allows proposals, if necessary, to be forced on unwilling creditors or members, if those proposals are likely to result in the greater long-term viability of the company.

This webinar looks at the requirements for a successfully court-approved reconstruction plan and discusses the case law to date to see how the courts are interpreting the legislation.

It is suitable for lawyers, accountants, and insolvency practitioners.

What You Will Learn

This webinar will cover the following:

• How a restructuring plan differs from a scheme of arrangement or a CVA
• What are the benefits?
• What are the drawbacks?
• The requirements for a successfully court-approved plan
• Recent case law and what this tells us

This webinar was recorded on 14th September 2023