Debt Restructuring in the UK
Many jurisdictions around the world are seeking to develop an effective mechanism for rescuing financially distressed but viable businesses. In the UK a number of different mechanisms exist which can be used to restructure distressed companies. The purpose of this paper is to assess the debt restructuring mechanisms currently available to companies in English law and to consider the proposed reform of the UK regime, announced by the Government in August 2018. It is argued that reform is needed, and that in general the proposals to introduce a restructuring moratorium and a restructuring plan which includes a cross class cramdown are to be welcomed. However, these reforms will need to be introduced with care in order to ensure that an appropriate balance is maintained between the interests of the company and the interests of the creditors and that, ultimately, the UK’s regime remains fit for purpose for the future.
© 2018 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- The Continuing Importance of the Scheme of Arrangement as a Debt Restructuring Tool
- Debt Restructuring in the UK
- Reflections on English Law Schemes of Arrangement in Distress and Proposals for Reform
- Debt Restructuring in Germany
- Scheming against the Schemes: A New Framework to Deal with Business Financial Distress in Spain
- The Singapore Story of Injecting US Chapter 11 into the Commonwealth Scheme
- The Scheme of Arrangement as a Debt Restructuring Tool in India: Problems And Prospects
- Path Dependence and Paradox in Harmonizing Out-of-court Procedures across Europe. The Evidence from Italy
Articles in the same Issue
- The Continuing Importance of the Scheme of Arrangement as a Debt Restructuring Tool
- Debt Restructuring in the UK
- Reflections on English Law Schemes of Arrangement in Distress and Proposals for Reform
- Debt Restructuring in Germany
- Scheming against the Schemes: A New Framework to Deal with Business Financial Distress in Spain
- The Singapore Story of Injecting US Chapter 11 into the Commonwealth Scheme
- The Scheme of Arrangement as a Debt Restructuring Tool in India: Problems And Prospects
- Path Dependence and Paradox in Harmonizing Out-of-court Procedures across Europe. The Evidence from Italy
