The new reorganisation plan: comparison with Schemes of Arrangement, Company Voluntary Arrangements and Chapter 11

The UK government has recently published its draft new insolvency and restructuring procedures and measures, with the aim of supporting companies in financial distress following the COVID-19 pandemic and the resulting economic crisis, in the Corporate Insolvency and Governance Bill 2020 (Bill). The Bill is being debated in Parliament in June and likely to come into force in July.

In the second webinar in this series, we discuss the ability of a company, which can include a foreign company, that has encountered or is likely to encounter financial difficulties, to propose a Restructuring Plan to its creditors or any class of them and/or its shareholders. The provisions in the Bill allow this new Restructuring Plan to bind dissenting creditors or members on certain conditions with court approval. We will compare the new Restructuring Plan process with the existing Schemes of Arrangement and CVA process in England and the Chapter 11 process used in the USA.