Schemes and forum shopping
Published by a LexisNexis Restructuring & Insolvency expert
Practice notesSchemes and forum shopping
Published by a LexisNexis Restructuring & Insolvency expert
Practice notes
Jurisdiction for English schemes
The English court may sanction a scheme of arrangement for a foreign company under section 895(1) of the Companies Act 2006 (CA 2006), if (see Knox J in Re Real Estate Development Co and Re Latreefers (No 2)):
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the company proposing the scheme is a company as defined by CA 2006, Pt 26 (ie a company liable to be wound up under the Insolvency Act 1986 (IA 1986). This includes a foreign incorporated company; see Re Magyar and IA 1986, ss 220(1)–221)
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there's a sufficient connection with England and Wales
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the scheme is capable of being effective (eg will be recognised and given effect to in other jurisdictions where the company has assets or creditors)
For further details on establishing jurisdiction, see Practice Note: Establishing jurisdiction and sufficient connection. There are examples of foreign companies incorporated in many of the countries throughout Europe which have made use of an English scheme, including:
| Company’s place of incorporation | Company name |
| Austria | Apcoa |
| Belgium | Apcoa, Re Van Gansewinkel Groep BV |
| Bulgaria | NEF |
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Forum shopping definition
What does Forum shopping mean?
The practice of choosing a specific jurisdiction favourable to an anticipated restructuring/insolvency, usually by moving COMI (centre of main interests).
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