Restructuring plan: Difference between revisions
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''Law - UK - insolvency''. | ''Law - UK - insolvency''. | ||
(RP). | |||
The restructuring plan is a UK insolvency procedure introduced by the UK's Corporate Insolvency and Governance Act 2020. | The restructuring plan is a UK insolvency procedure introduced by the UK's Corporate Insolvency and Governance Act 2020. | ||
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The restructuring plan is designed to be a more flexible means of implementing a restructuring for companies facing financial distress. | The restructuring plan is designed to be a more flexible means of implementing a restructuring for companies facing financial distress. | ||
:<span style="color:#4B0082">'''''Treasurers vital to secure creditor support'''''</span> | |||
:"A restructuring plan (RP)... is increasingly being used to turnaround ailing companies. | |||
:... the RP will [need to] be able withstand intense scrutiny and challenge by both the creditors and the judge. | |||
:Treasurers will therefore need to make sure the information they provide... is robust and thorough to support the process." | |||
:''The Treasurer magazine, Issue 4 December 2023, p19 - Permjit Singh FCT.'' | |||
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* [[London Approach]] | * [[London Approach]] | ||
* [[Moratorium]] | * [[Moratorium]] | ||
* [[Relevant alternative]] (RA) | |||
* [[Restructuring]] | |||
* [[Sanction]] | |||
* [[Scheme of arrangement]] | * [[Scheme of arrangement]] | ||
* [[Solvency]] | * [[Solvency]] | ||
* [[Statement of affairs]] | * [[Statement of affairs]] | ||
* [[Statutory demand]] | * [[Statutory demand]] | ||
* [[Turnaround]] | |||
* [[Voluntary liquidation]] | * [[Voluntary liquidation]] | ||
* [[Winding up petition]] | * [[Winding up petition]] | ||
Latest revision as of 14:18, 3 December 2023
Law - UK - insolvency.
(RP).
The restructuring plan is a UK insolvency procedure introduced by the UK's Corporate Insolvency and Governance Act 2020.
The restructuring plan is designed to be a more flexible means of implementing a restructuring for companies facing financial distress.
- Treasurers vital to secure creditor support
- "A restructuring plan (RP)... is increasingly being used to turnaround ailing companies.
- ... the RP will [need to] be able withstand intense scrutiny and challenge by both the creditors and the judge.
- Treasurers will therefore need to make sure the information they provide... is robust and thorough to support the process."
- The Treasurer magazine, Issue 4 December 2023, p19 - Permjit Singh FCT.
- Potentially very useful reform
- "The procedure is closely based on the scheme of arrangement, but with some important distinctions.
- Most notable is the inclusion of a cross-class, cram-down mechanism.
- This will allow the court to sanction a plan even if the support of a class has not been obtained, as long as certain conditions are met.
- The restructuring plan has the potential to be a very useful addition to the toolkit, and the first such plan has already been proposed, although there are a number of complex issues that will need to be worked through and tested in practice."
- The Treasurer magazine, October 2020, p40 - Slaughter and May.
See also
- Balance sheet insolvent
- Cash flow insolvent
- Chapter 11
- Company voluntary arrangement
- Corporate Insolvency and Governance Act
- Cost of financial distress
- Creditors
- Individual Voluntary Arrangement
- Insolvency
- Insolvency practitioner
- Insolvency Service
- London Approach
- Moratorium
- Relevant alternative (RA)
- Restructuring
- Sanction
- Scheme of arrangement
- Solvency
- Statement of affairs
- Statutory demand
- Turnaround
- Voluntary liquidation
- Winding up petition
- Workout
- Wrongful trading
