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Supercharging the scheme for restructurings: cram-up, cram-down and cram-across under the new UK restructuring plan

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Tim Watson

Partner

London

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Marshall Jennifer
Jennifer Marshall

Partner

London

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Ferguson Joel
Joel Ferguson

Partner

London

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Nick Lister

Partner

London

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22 May 2020

The introduction of the UK Corporate Insolvency and Governance bill (the Bill) to Parliament on 20 May 2020 is nothing less than a watershed moment for cross-border restructuring.

Within the 238 page Bill are sweeping changes to the insolvency and restructuring landscape, including the introduction of a new statutory restructuring plan (the Restructuring Plan). The Restructuring Plan is modelled on the UK scheme of arrangement and, like the scheme, is incorporated within the Companies Act 2006 and not under an insolvency statute. A detailed summary and Q&A analysis of the Bill is available here.
 
Our expectation is that the Restructuring Plan will very quickly become the restructuring implementation tool of choice in cross-border restructurings. In this paper, we consider how the Restructuring Plan could change the ways in which cross-border restructurings are structured and implemented in the UK and across Europe.