Restructuring tools

Restructuring tools guidance:

THIS PRACTICE NOTE APPLIES TO MULTI-EMPLOYER DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES Apportionment arrangements provide exiting employers of underfunded defined...

Practice Note

It's important to consider the underlying finance documents to determine the requisite majorities of creditors which can block certain actions necessary to maintain an...

Practice Note

General overview of asset sales Whether a buyer is purchasing assets from a solvent seller, or a seller which is distressed or in a formal insolvency proceeding, will...

Practice Note

This Agreement is made [insert day and month] 20[insert year] Parties 1 [insert name of debtor company] a company incorporated in [insert country eg England and Wales]...

Precedents

One of the initial signs of distress is usually a covenant breach by the company. The lenders may agree to a simple waiver, which cures a temporary blip in the company's...

Practice Note

A popular restructuring method is a debt for equity swap; financial creditors receive equity in the restructured vehicle in return for reducing or cancelling their debt...

Practice Note

Brexit impact This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union. For further details of the impact on the Recast...

Practice Note

This Practice Note summarises: • the different forms of share security • the main enforcement options open to security takers • practical considerations for security...

Practice Note

This Practice Note covers: • what arrangements under Insolvency Act 1986 (IA 1986), s 110 (a s 110 arrangement) is (see: What is a s 110 arrangement?) • the rationale for...

Practice Note

When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the company may want to...

Practice Note

When restructuring is being considered, the company must ensure that relevant creditors quickly enter into a confidentiality agreement or non-disclosure agreement (NDA)...

Practice Note

FORTHCOMING CHANGE on amendments to FA 1986, s 77A: Finance Bill 2019–20 amends, with effect from Royal Assent, section 77A of Finance Act 1986 (FA 1986) to ensure that...

Practice Note

Need for new money The starting point for many companies facing financial difficulty is to look to obtain additional cash to fund the business through a downturn in...

Practice Note

The term 'recapitalisation' refers to a company changing the proportions of its debt and equity, something which can be achieved in a variety of ways. In some cases the...

Practice Note

What is a rescue buyout? A company or a business in a rescue situation is one that is in potential financial difficulties, either because it finds itself: • unable to pay...

Practice Note

This Agreement is made on [insert day and month] 20[insert year] Parties 1 The Consenting Lenders (listed in Schedule 1); 2 [The Consenting Bondholders (listed in...

Precedents

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a...

Practice Note

Restructuring deals may use a combination of informal methods combined with more formal methods to bind dissenting parties, including: • schemes of arrangement • pre-pack...

Practice Note

Once a company starts showing signs of distress, its directors must act quickly if they want to complete a successful restructuring. The timing of the process varies from...

Practice Note

This Agreement is made on [insert day and month] 20[insert year] Parties 1 The Lenders (as set out in Schedule 1) (the Lenders); and 2 [insert name of debtor company] a...

Precedents

A popular restructuring method is to transfer the company's assets or business to a newly formed company (Newco). Essentially the good assets and business(es) are...

Practice Note
Trending Topics
In-House COVID-19