Q&As

What is the ‘London Approach’ in a restructuring context?

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Published on LexisPSL on 17/10/2018

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • What is the ‘London Approach’ in a restructuring context?

What is the ‘London Approach’ in a restructuring context?

The London Approach was originally designed by the Bank of England in the 1970s, and was developed further in the 1980s and 1990s. It was designed as a collective process for voluntary workouts to restructure debts of corporates in distress, while maximising their value as going concerns.

It comprises a set of non-binding principles that serve as a guide for participants in debt restructuring processes:

  1. lending banks agree not to exercise their rights to initiate an official insolvency process (standstill)

  2. any decision is made based on reliable information that must be shared among all the lending banks and that remains confidential (information)

  3. banks should work together to

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