Archive: August 2023

A company can agree with its creditors to restructure its debts through various processes. This usually happens when the company’s underlying business is experiencing financial difficulties. The statutory processes are a scheme of arrangement (Scheme), restructuring plan (RP), and a company voluntary arrangement (CVA).

The latest statistics released by the Australian Securities and Investment Commission (ASIC) show that 7,942 Australian companies entered into external administration in 2022-23 financial year. This is up by nearly 50 percent compared to the previous year. These statistics also show that increased business distress is more acutely felt in the following high-risk industries:

Grave uncertainties following the war in Ukraine and the lingering effects of the pandemic had inspired German lawmakers to pass a series of legislative measures to soften the ramifications of multiple crisis factors for the national economy. Part of the crisis legislation (SanInsKG) was a temporary modification of one of the two insolvency triggers provided for under German insolvency law. The legislation is about to lapse and this is what managing directors now need to know.

In this blog, our Dutch team examines the recent WHOA restructuring of Royal IHC (the Company) where they played a leading role advising the dissenting secured lender. This was a landmark restructuring and one of the largest WHOA cases to date. It was also the first WHOA proceeding involving a syndicate of lenders. The entire WHOA proceeding was completed in an expedited timeline of less than three months.