Restructuring Plans - Practical Tips & Important Recent Developments

Introduction

In one of the most significant changes to UK insolvency and restructuring law for 25 years, restructuring plans were introduced into Part 26A of the Companies Act 2006 as part of the package of emergency measures in the Corporate Insolvency and Governance Act 2020.

The new regime provides a company encountering financial difficulties with a powerful restructuring tool.

A restructuring plan allows a company to reach a binding ‘arrangement’ or ‘compromise’ with its creditors and/or shareholders.

The restructuring plan regime draws upon the features of the existing scheme of arrangement procedure (which remains available) but includes features which are new including the ability to effect a ‘cross-class cram down’ of dissenting classes of creditors or shareholders so as to prevent the blocking of otherwise viable restructuring plans.

The new regime is highly flexibility and has, since its introduction in 2020, been used in a wide variety of circumstances including in connection with SMEs.

This virtual classroom seminar will provide an essential guide to the restructuring plan regime, with particular focus on providing practical tips and important recent developments.

What You Will Learn

This live and interactive session will cover the following:

• An overview of the restructuring plan procedure
• How to prepare an application for a restructuring plan
• What needs to be provided in the Practice Statement Letter and the Explanatory Statement
• ‘Class issues’
• What needs to be prepared in advance of the convening hearing, including valuation evidence and strategic issues for consideration at that hearing
• Issues to consider in relation to plan meetings
• What needs to be prepared in advance of the sanction hearing and strategic issues for consideration at that hearing
• Lessons to be learnt from important recent cases

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.