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Insolvency reform: let’s not forget about the scheme of arrangement regime (again!)

In brief

As settlement in relation to Ukraine’s successful sovereign exchange offers is expected today, we explain why this sovereign deal is groundbreaking.

Background: The Exchange Offers

On 22 September 2015, Ukraine launched Exchange Offers in relation to the following (Old Notes):

On Monday 17 November 2014, Weil held its inaugural European Distressed Investor Conference at The Dorchester in London. A summary of the key discussion points follows.

Panel A:

There have recently been a number of significant developments in relation to schemes of arrangement. These include:

  • the Federal Court refusing to make orders convening a meeting of CSR’s shareholders to vote on a demerger proposal by way of scheme, on public policy and commercial morality grounds relating to CSR’s potential asbestos liabilities
  • the Government’s corporate law advisory body recommending significant reforms to the scheme regime, and
  • developments regarding ‘hostile schemes’.

Each of these developments is discussed below.