Background to the Restructuring Plan

The UK has introduced the Restructuring Plan; a new, flexible court supervised restructuring tool. The Restructuring Plan draws upon features of the existing Companies Act 2006 scheme of arrangement procedure (which remains available) but includes features which are new to the UK but similar to those under U.S. Chapter 11 bankruptcy proceedings.

In brief

Will your business be financially viable at the end of lockdown? What challenges does 2021 pose? What are the next steps

Travel & Aviation Quarterly Issue 3 – Spring 2021 3 Hare Court Travel & Aviation Quarterly 2 www.3harecourt.com Issue 3 – Spring 2021 21 Table of Contents Foreword 4 Contributors to Issue 3 5 What will change in UK equality and employment law as a result of Brexit?

Although the UK left the EU on 31 January 2020, the impact of Brexit on cross-border insolvencies was largely postponed until the end of the transition period at 11pm on 31 December 2020.

The UK is now designated as a "third country" from the perspective of the EU, directly applicable EU laws and regulations no longer apply, and the Brexit Trade and Cooperation Agreement does not deal with cross-border insolvencies. As such, insolvency practitioners may now be left feeling that they are effectively in a "no-deal" scenario.

Background

In June 2020, the Corporate Insolvency and Governance Act (the “CIGA”) introduced a new procedure to the restructuring toolkit in England & Wales, the Part 26A restructuring plan (the “Plan”, see further detail on CIGA in our article here). The Plan is similar to the well-tested English law scheme of arrangement (the “Scheme”), and the English courts have so far relied on the wealth of Scheme case law to guide them in deciding whether to sanction a Plan.

This article discusses considerations for credit funds that face a restructuring situation in the post-COVID-19 world — whether one largely caused by the challenges posed by the pandemic or one simply accelerated by such challenges — and how workouts of these investments present their own challenges.

The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID

European Real Estate Finance: Market Update – Q1 2021 March 2021 Authors: Jeffrey Rubinoff, Dr. Thomas Flatten, Thierry Bosly, Hadrien Servais, Carl Hugo Parment, Fernando Navarro, Christophe Goossens, Julio Peralta, Angel Calleja, Aurélie Terlinden, Alexandra Stolt, Amitaben Patel & Brendon Vyas Further information on the response to COVID-19 can be found here, and we also have a German-language article, available here, looking at the impact on commercial leases. LIBOR Discontinuation Much has happened in the world of LIBOR Discontinuation since our last update.

Key Takeaways