Restructuring plan

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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