Restructuring options and processes

Restructuring options and processes guidance:

Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

It's important to consider the underlying finance documents to determine the requisite majorities of creditors which can block certain actions necessary to maintain an...

Practice Note

In December 2015, Newey J sanctioned a scheme of arrangement for part of the Spanish Codere group, in an interesting case of good forum shopping. Brexit impact As of exit...

Practice Note

One of the initial signs of distress is usually a covenant breach by the company. The lenders may agree to a simple waiver, which cures a temporary blip in the company's...

Practice Note

A popular restructuring method is a debt for equity swap; financial creditors receive equity in the restructured vehicle in return for reducing or cancelling their debt...

Practice Note

Brexit impact This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union. For further details of the impact on the Recast...

Practice Note

Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

This Practice Note should be read in conjunction with Practice Note: Schemes of arrangement—convening hearing and sanction hearing in light of the different role that the...

Practice Note

Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the company may want to...

Practice Note

Need for new money The starting point for many companies facing financial difficulty is to look to obtain additional cash to fund the business through a downturn in...

Practice Note

In September 2017, the Grand Court of the Cayman Islands (Parker J) sanctioned four separate interlinked Cayman Islands schemes of arrangement to restructure the...

Practice Note

The term 'recapitalisation' refers to a company changing the proportions of its debt and equity, something which can be achieved in a variety of ways. In some cases the...

Practice Note

Restructuring deals may use a combination of informal methods combined with more formal methods to bind dissenting parties, including: • schemes of arrangement • pre-pack...

Practice Note

Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

There are many options for restructuring a company's debt. The most appropriate method depends upon the degree of the company's financial difficulties, the complexity of...

Practice Note

Once a company starts showing signs of distress, its directors must act quickly if they want to complete a successful restructuring. The timing of the process varies from...

Practice Note

Initial steps Whether you are acting for the debtor, creditor, potential purchaser or shareholder and regardless of which jurisdiction the restructuring takes place in...

Practice Note

Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a...

Practice Note

This Practice Note looks at the general principles involved in determining class issues. For a more detailed look at what may or may not fracture a class, see Checklist:...

Practice Note

This Practice Note sets out certain key cases and associated relevant content in relation to schemes of arrangement. The cases are divided by topic area and include: •...

Practice Note

Why chapter 11? Chapter 11 provides a debtor with an opportunity to reorganise a business or capital structure while continuing normal business operations under the...

Practice Note

A popular restructuring method is to transfer the company's assets or business to a newly formed company (Newco). Essentially the good assets and business(es) are...

Practice Note

Finding where value breaks governs the shape of any restructuring deal and determines who has a seat at the negotiating table (see Practice Notes: Where the value breaks...

Practice Note

What is valuation in the context of a scheme of arrangement? In general, a valuation in the context of a scheme of arrangement (a scheme) is used to estimate the value...

Practice Note

This Practice Note considers the effect of a company’s insolvency on an occupational pension scheme in respect of which the company is the sponsoring employer. It also...

Practice Note

A pre-pack administration—some basic principles A pre-pack is a sale of a company's business or assets, or both, which has been arranged in advance of a company entering...

Practice Note

Early in the restructuring negotiations, the parties will obtain valuations of the company to determine where value breaks (see Practice Note: Types of valuation for R&I...

Practice Note