Restructuring cross-border groups using English pre-pack administration [Archived]
Restructuring cross-border groups using English pre-pack administration [Archived]

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

  • Restructuring cross-border groups using English pre-pack administration [Archived]
  • Brexit impact
  • Options for restructuring foreign companies
  • Case study of Re Christophorus—key facts
  • Restructuring—key steps
  • Court's decision on the release
  • Conclusion

This Practice Note is archived and no longer maintained.

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 implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources. For details of the impact on the Recast Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency.

Options for restructuring foreign companies

If time allows, practitioners can be creative when deciding which insolvency procedure to use for a foreign company to maximise recoveries to creditors and other stakeholders. This jurisdictional arbitrage is relatively commonplace given the existing divergence between insolvency and restructuring regimes throughout Europe (see Practice Notes: Forum shopping and practical ways to move COMI and Table of advantages and disadvantages of restructuring in various jurisdictions worldwide).

Some foreign companies have successfully managed to shift their centre of main interests

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