Restructuring plan

Law - UK - insolvency.

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.

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
• Scheme of arrangement
• Solvency
• Statement of affairs
• Statutory demand
• Voluntary liquidation
• Winding up petition
• Wrongful trading