Restructuring and insolvency—United Kingdom - England & Wales—Q&A guide

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

  • Restructuring and insolvency—United Kingdom - England & Wales—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—United Kingdom - England & Wales—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in United Kingdom - England & Wales published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Freshfields Bruckhaus Deringer—Catherine Balmond; Katharina Crinson; Samantha Rigney

1. What main legislation is applicable to insolvencies and reorganisations?

Insolvency

The legislation principally applicable to the insolvency of companies incorporated in England and Wales is the Insolvency Act 1986 (the Insolvency Act), as amended. The Insolvency Act is supplemented by subordinate legislation, the most important of which are the Insolvency (England and Wales) Rules 2016 (the Insolvency Rules). The Company Directors Disqualification Act 1986 deals with the position of directors of insolvent companies.

Reorganisation

In relation to reorganisations, the Companies Act 2006 is relevant, setting out the provisions concerning schemes of arrangement and restructuring plans.

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

The insolvency of partnerships (other than limited liability partnerships) is dealt with by the Insolvent Partnerships Order 1994 (as amended). Limited liability partnerships are subject to the Insolvency Act 1986 and related subordinate legislation subject to exceptions.

Special regimes

There are special insolvency proceedings in respect of companies belonging to certain key industries. The aim of the

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