Corporate Restructuring Plans - Top Tips & Benefits Explained

Introduction

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

It was introduced during COVID-19 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.

The ‘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, which is suitable for lawyers, accountants, and insolvency practitioners, explains the requirements for a successfully court-approved restructuring plan and discusses the case law to date to see how the courts are interpreting the legislation.

As courts are becoming more familiar with the legislation, the benefits of the restructuring plan are becoming more apparent.

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?
• What is needed to ensure a court-approved plan?
• Lessons learned from recent case law

This webinar was recorded on 9th September 2024

You can gain access to this webinar and 1,700+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.