Restructuring plan in respect of a Limited Liability Partnership

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

  • Restructuring plan in respect of a Limited Liability Partnership
  • The restructuring plan under CA 2006, Part 26A
  • Applicable law
  • Eligibility
  • Who may propose a plan?
  • Moratorium creditors and excluded creditors
  • Procedure
  • Time table

Restructuring plan in respect of a Limited Liability Partnership

The restructuring plan under CA 2006, Part 26A

The Corporate Insolvency and Governance Act 2020 (CIGA 2020) received royal Assent on 25 June 2020. It made a number of significant changes to insolvency law as it relates to limited liability partnerships (LLPs), including introducing two new procedures: the restructuring plan and the moratorium. For further details on CIGA 2020, see: Corporate Insolvency and Governance Act 2020—overview.

This Practice Note considers eligibility and procedural matters in relation to Part 26A restructuring plans in the context of LLPs. For further information on the restructuring plan generally, see Practice Notes: Corporate Insolvency and Governance Act 2020—restructuring plan provisions and Corporate Insolvency and Governance Act 2020—frequently asked questions (FAQs) on the restructuring plan.

CIGA 2020 introduced a new Part 26A of the Companies Act 2006 (CA 2006)—Arrangements and Reconstructions for Companies in Financial Difficulty (a ‘restructuring plan’). It is supported by the Practice Statement (Companies: Schemes of Arrangement under Part 26 and Part 26A of the Companies Act 2006) (Practice Statement 2020) and the Explanatory Notes prepared by the Department for Business, Energy and Industrial Strategy. These are admissible as an aid to the interpretation without needing to show that the legislation is ambiguous or unclear (per Snowden J in Re Virgin Atlantic Airways applying Re Flora v Wakom (Heathrow) Ltd).

The Part 26A

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