The only certainty following the referendum is that exiting the EU will substantially alter the legal landscape from a recovery and insolvency viewpoint.

Over the past few years the various EU members have been working hard to eradicate or minimise inconsistencies between the individual regulations which have led to not only confusion but also “forum shopping” by those facing insolvency. The idea is to provide a level playing field so that businesses in particular knew where they stood should a company in another country get into trouble.

Following the referendum outcome Andrew Tate, president of R3 (the Association of Business Recovery Professionals), has stated that “there is clearly going to be a period of huge economic uncertainty” and has requested that all members (Insolvency Practitioners, lawyers and advisors) “step up to help businesses and individuals”.

June 2016 BREXIT A changing legal landscape? 1 INTRODUCTION Yesterday, the UK public voted for the UK to leave the European Union ( EU). This briefing discusses, in outline, the potential timetable for Brexit, the possible shape that Brexit might take and the potential impact Brexit might have on certain areas of law relevant to your business.

Brexit Overview

Legal implications of the UK withdrawal from the EU

There is no precedent for a member state leaving the EU and we can expect slow progress to be made in relation to our exit and the conclusion of alternative trade deals, with estimates for the timescale ranging from two to 10 years. However long it takes, we can be sure that complex negotiations will be required.

As the country recovers from the shock outcome of last Thursday’s Referendum, the question which Restructuring professionals must now consider is “what does Brexit mean for me?”. The truth is that nobody really knows. The Referendum decision is not legally binding on the UK Government and the process of the UK leaving the EU will only start once the UK has served formal notice on the EU pursuant to Article 50 of the Treaty on the European Union. This will start a two year negotiation period to effect Brexit.

This briefing covers Brexit implications of restructuring and insolvency, in particular it discusses the implications on the European Regulation on Insolvency Proceedings and recognition of insolvency judgments and how schemes of arrangement will be impacted by Brexit.

The UK is a well-established jurisdiction for cross border insolvencies, both within the EU and the rest of the world. The main piece of EU legislation that governs this area of law is the EC Council Regulation 1346/2000 ("the Insolvency Regulation"). Ultimately, this legislation facilitates the recognition of insolvency proceedings that span multiple jurisdictions. The Insolvency Regulation sets out the correct jurisdiction in cross border situations and, crucially, makes it mandatory for Member States to recognise insolvency proceedings in other EU countries.

Summary

Pension scheme trustees will generally be concerned to try to ensure that the “safety net” provided by the Pension Protection Fund (PPF) remains potentially available for their scheme.

English insolvency and restructuring law and procedures are significant at both the European and world level. In recent times lenders, debtors and many others have sought to take advantage of the varied, flexible and fair procedures available in our jurisdiction.

The performance of the UK manufacturing sector is one of the key indicators of the health of the UK economy as a whole. To what extent is the current stagnant growth in that sector a result of the impending EU referendum?