Corporate Insolvency and Governance Act 2020—frequently asked questions (FAQs) on the restructuring plan

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Corporate Insolvency and Governance Act 2020—frequently asked questions (FAQs) on the restructuring plan

Corporate Insolvency and Governance Act 2020—frequently asked questions (FAQs) on the restructuring plan

The Corporate Insolvency and Governance Act 2020 (CIGA 2020) creates a new restructuring tool in the form of a restructuring plan under Part 26A of the Companies Act 2006 (see Practice Note: Corporate Insolvency and Governance Act 2020—Restructuring Plan provisions). Although it is largely based on the existing procedure for schemes of arrangement, there are some notable differences, including the introduction of cross-class cram down (CCCD) (see Checklist: Checklist of differences between CIGA restructuring plans and schemes of arrangement and Practice Note: Cross-Class Cram Down under a Part 26A restructuring plan).

Below we consider some frequently asked questions (FAQs) on the restructuring plan.

Please note that we are unable to give legal advice and this Practice Note does not constitute legal advice.

QuestionAnswerFurther reading/relevant legislation
Are creditor claims automatically stayed once a restructuring plan is presented? No, but a statutory moratorium is available, subject to eligibility, to protect a company while it prepares its proposal (see Practice Notes: Corporate Insolvency and Governance Act 2020—moratorium and Corporate Insolvency and Governance Act 2020—moratorium extension and termination). Alternatively, upon application the courts may stay (i) individual creditor claims under CPR 3.2(1)(f) or (ii) enforcement of judgments under CPR Rule 87.3(4)(a), where there are special circumstances which render it inexpedient to
Related documents:

Popular documents