Debt waivers, extending maturity and debt rescheduling
Debt waivers, extending maturity and debt rescheduling

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

  • Debt waivers, extending maturity and debt rescheduling
  • Brexit impact
  • Rationale
  • Serious loss of share capital
  • Mechanics
  • Intercompany debts
  • Tax reliefs
  • Circumstance 1—statutory insolvency arrangement: releases
  • Circumstance 2—debt-for-equity swap: releases
  • Circumstance 3—liquidation, administration and administrative receivership: releases
  • more

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 Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency.

We will continue to monitor developments in this respect and throughout the negotiation period and beyond. In the meantime, for further reading on the impact of Brexit and related issues facing lawyers in this area, see Practice Note: Brexit—worst case scenarios for R&I lawyers.

For updates and details of other Brexit related developments and legislation, see Practice Note: Brexit SI tracker for R&I practitioners. For access to related documents and further reading on Brexit, see: Brexit toolkit.

Most restructurings involve companies which are over-levered and unable to service current debt levels. Where the parties agree, this can be remedied by rescheduling the debt to extend maturity dates, or a waiver of debt if more extensive restructuring is required.

During 2002 to 2007, credit was cheaply and freely available and companies took on large amounts of debt. Immediately following the 2008 credit crunch, companies tried to de-lever their balance sheets.

This Practice Note covers:

  1. debt rescheduling—extending the amortisation/repayment schedule of the debt to allow the company to survive temporary financial difficulties. The aim of a debt rescheduling is to put in