A restructuring plan completed earlier this year by Smile Telecoms notches up a number of firsts.
African telecommunications provider Smile Telecoms Holding Limited, incorporated in Mauritius, successfully completed a restructuring plan (the Plan) under Part 26A of the UK Companies Act 2006 at the end of March 2021.
The Plan features a number of novel actions, including:
Issuers face numerous restructuring alternatives, both within and outside the bankruptcy process
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The new measures seek to overcome the expected high rate of insolvency, refinancing, and corporate disputes arising from the COVID-19 crisis
The reforms, which are the result of the transposition of the EU’s Restructuring Directive, should come into force in October.
Key Points:
New legislation suspends contractual obligations for the next six months with related disputes subject to a separate dispute resolution system.
On 7 April 2020, the Singapore Parliament passed the COVID-19 (Temporary Measures) Act (the Act) offering temporary relief to businesses and individuals who are unable to fulfil their contractual obligations because of COVID-19 and providing temporary amendments to bankruptcy and insolvency laws. The Act went into effect immediately.
The decision provides new judicial guidance for determining the boundaries of cross-class cram down tests.
On 28 June 2021, the High Court declined to sanction a restructuring plan proposed by Hurricane Energy plc (Hurricane), an AIM listed oil drilling company, under Part 26A of the Companies Act 2006 (Act). The plan would have seen shareholders diluted to 5% of Hurricane’s equity, with the remaining 95% issued to bondholders as consideration for a partial debt-for-equity swap.
Debtors and creditors can use several options under the Insolvency Law in Saudi Arabia to address COVID-19-related difficultie
The ruling confirmed that Section 423 of the Insolvency Act 1986 has extensive international reach, and does not require a transaction at an undervalue to leave the debtor with insufficient assets.
Background