Resumen de Why might an english restructuring plan be used by companies outside the uk?
This paper highlights the reasons why a company might choose to use an English Part 26A Restructuring Plan, which is closely modelled on the requirements contained in Directive (EU) 2019/1023 on preventive restructuring frameworks, rather than a broadly equivalent procedure in its own jurisdiction.
The paper focuses on (i) the availability of a significant body of existing precedents, (ii) flexibility as to what can be proposed in a Plan, (iii) the relative weakness of out of the money “non-critical” creditors, (iv) the comparative speed and predictability of the Plan process and (v) the fact that a Plan may be the only way of restructuring English law liabilities. It is noted that the law in this area is developing and that a recent Court of Appeal judgment may have implications for the timing and predictability of Plans.
