UK Restructuring A YEAR IN RETROSPECT 2 Contents Introduction Our people UK team Matter Highlights UK Restructuring Employment UK Restructuring Section Header Section Header Contents 3 Robert Russell UK Head of Restructuring +44 (0)161 235 4147 [email protected] 2023 – Continued instability Casting our minds back to January last year, the economic outlook was fraught with uncertainty.

Here’s my biggest bankruptcy shocker from 2023:

• the Third Circuit’s rationale for dismissing Johnson & Johnson’s bankruptcy.

I’ll try to explain.

Appalled

I’m still appalled by the lack of concern, from the Third Circuit Court of Appeals in its dismissal opinion, over these disparities it describes in results for similarly situated claimants:

A statutory demand (“SD”) is a formal written request for payment of a debt, typically issued by a creditor to a debtor. This legal document serves as a precursor to more severe actions, such as winding up proceedings or bankruptcy. Understanding the key aspects of a SD is crucial for both creditors seeking repayment and debtors facing potential legal consequences.

1. Purpose and legal basis

Introduction

The modification or withdrawal of Resolution Plans under the Insolvency and Bankruptcy Code, 2016 (“Code / IBC”) had always been a contentious subject, with the National Company Law Tribunal (“Adjudicating Authority / NCLT”) and National Company Law Appellate Tribunal (“NCLAT”) taking conflicting views in the past.

目前庭外债务重组的表决程序尚没有明确的强制性规定，其实质是债权人和债务人之间的协商合意，在债务人与债权人“单对单”的重组场景下，由债务人和债权人协商重组条件、签署重组文件，相关重组文件可以发生对债务人和债权人的约束。但在大型企业整体债务重组中，涉及较多的债务重组主体和数量较多的债权人。在各债权人存在不同诉求的情况下，可能无法达到百分之百债权人同意方案、签署重组协议，故如何高效、快速地完成整体重组方案的表决，以及表决通过的重组方案对投弃权票甚至明确反对的债权人是否有约束力，是债务重组实践中债务人和债权人均会关心且经常面临的实际问题。

一、庭外债务重组方案表决的程序探讨

（一）重组方案的表决程序概述

The Insolvency and Financial Rehabilitation Law came into effect in 2019. The new law added a new cause of action for imposing personal liability on a director or CEO of a corporation in insolvency in respect of damages caused to the corporation and to its creditors, insofar as such directors and officers failed to take action to minimize the scope of the corporation’s insolvency.

As the Grand Court of the Cayman Islands reopens for 2024, we reflect on 2023 and some of the large-scale cross-border insolvency and restructuring proceedings, and complex commercial disputes dealt with in the jurisdiction over the past year.

Statistics from the Grand Court

There were approximately 1,579 filings made in the Grand Court, which can be broken down as follows:

The last 12 months have seen a steady increase in restructuring and stressed or distressed financing transactions in the European market across a range of sectors, including tech, real estate, hospitality, manufacturing and retail.

“Bankruptcy provides a valuable and desirable venue for the resolution of [mass tort] disputes” by:

一，问题的提出 随着近年来供给侧结构性改革以及优化营商环境指标相关措施的推进，企业破 产案件数量逐年增加。以上海破产法庭为例，2020 年全年立案受理破产、公司 强制清算、衍生诉讼等各类案件共计 1567 件，同比增长 32.7%；2021 年全年立 案受理同类案件共计 2381 件，同比增长 51.9%；2022 年全年立案受理同类案件 共计 3412 件，同比增长 43.3%。 但是仅就重整程序而言，上海破产法庭 2020 年共计办结重整成功案件 4 件，盘 活企业资产总价值 14.66 亿元，普通债权平均清偿率 57.5%[1]；2021 年共计办 结重整成功案件 13 件，盘活企业资产总价值 75.6 亿元，普通债权平均清偿率 10.4%[2]；2022 年盘活企业资产 11.3 亿元，普通债权平均清偿率 4.9%[3]。 可以看出，近年来破产案件受案数量呈现爆发性增长的态势，但是重整成功的 案件数量增长率相较于整体破产案件的涨幅来讲并没有显著增加，同时盘活资 产总价值也存在波动，而评判一个重整案件法律效果和社会效果最直观的指标 “普通债权清偿率”呈现出断崖式下降，降幅高达 91.48%。