Evaluation of the UK’s CIGA Reforms: A Best Practice Model for other jurisdictions?

Scott Atkins discusses the UK Restructuring Plan under CIGA with Felicity Toube KC, Hilary Stone, and Professor Peter Walton in the April 2023 edition of the South Square Digest.

This interesting article looks at the UK Restructuring Plan as a model for restructuring processes around the world, with some suggested tweaks.  The advantages of the UK Restructuring Plan – the cross class cram down mechanism, the seamless use of 150 years of Scheme of Arrangement precedents to support restructurings, the broader restructuring ecosystem of a highly skilled judiciary and professional community, plus the standalone moratorium process – are what make it a good model for restructuring processes across the globe. 

Singapore has recognised this and made its own progressive changes to its insolvency laws, making it an attractive and key hub for cross border restructurings; Australia is carrying out consultations to consider introducing a moratorium and updating its scheme of arrangement laws; and EU member states have been introducing their own rescue processes in recent years, including the Dutch WHOA and the German StaRug. 

The authors look at what changes could be made to the UK Restructuring Plan to strengthen the UK’s broader economic and financial systems and retain its position as an international restructuring hub of choice. Read the full article.