Category Archives: Restructuring

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Cramming Down Pension Liabilities: The Final Frontier?

Defined benefit pension arrangements in the UK may not be immune to cross-class cramdown powers under a Part 26A restructuring plan. By Shaun M. Thompson, Hafza Hussein, Paul R. Lawrence, and Tim Bennett As the UK looks set to enter a new restructuring cycle, the question remains whether a restructuring plan (RP) could be used … Continue Reading

E-Money, Payment Services, and Insolvency

Consumers and service providers should take note of some of the enhanced risks upon an e-money institution’s insolvency. By Hongbei Li Technology is rapidly changing the way customers and businesses interact with financial systems. Fintech companies are a driving force behind the disruption of traditional banking and payment services, with regulatory innovation close behind. In … Continue Reading

StaRUG in Practice: German Scheme Expands Restructuring Options for Debtors

The scheme offers a credible implementation alternative, but no “one size fits all” solution exists for German credits. By Daniel Splittgerber German credits in sectors such as real estate, automotive, and energy face a worsening macro backdrop. At the same time, the available toolkit for financial restructurings has expanded, offering multiple options without the need … Continue Reading

Cross-Border Recognition: Hong Kong Schemes and the Compromise of Foreign Law-Governed Debt

Judicial comments cast doubt on the ability to compromise US law-governed debt effectively based on Chapter 15 recognition alone. By Bruce Bell, Adam J. Goldberg, Howard Lam, Flora Innes, and Tim Bennett A recent first instance decision in Hong Kong has highlighted an important conflict-of-laws issue that will inform where debtor groups with a Hong … Continue Reading

National Security & Investment Act: Cold Comfort for Officeholders

Insolvency officeholders may need clearance upon appointment to entity in an affected sector. The National Security & Investment Act (NSI Act) came into force in early January, and market participants might reasonably have expected a common approach to the practice of mandatory and voluntary notifications to have bedded down by now. However, due to the … Continue Reading

UK and European Restructuring Tools: Choosing the Optimal Forum for Creditor and Shareholder Cramdown

Debtors and investors have an enhanced choice of restructuring venues as the EU Restructuring Directive is rolled out in Member States A number of key European jurisdictions have now implemented the EU Preventive Restructuring Directive, the broad thrust of which is to introduce harmonised out-of-court restructuring procedures across Member States to address financial difficulties at … Continue Reading

Restructuring With Regulators: Where Law and Policy Collide

Balancing the urgency of delivering a restructuring with regulatory requirements in a regulated sector. Restructuring a company in a regulated sector is always challenging. Navigating directors’ duties is difficult enough in an unregulated sector, but the additional layer of oversight and statutory compliance required in regulated sectors often places directors proposing a restructuring in the … Continue Reading

Schemes and Restructuring Plans: Where Are We Now?

The forecast for the English scheme and plan looks set fair despite concerns around Brexit turbulence. The restructuring market’s appetite for Part 26 schemes of arrangement and Part 26A restructuring plans shows no signs of diminishing, with some debtors (Smile Telecoms and ED&F Man) even taking a second bite of the cherry. In this article, … Continue Reading