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Proposed UK Insolvency and Restructuring Reforms: A Deeper Dive
Richard Tett, Head of London Restructuring & Insolvency, and Katharina Crinson, Senior Knowledge Lawyer, Freshfields Bruckhaus Deringer LLP, London, UKSynopsis
In volume 15 issue 5 of International Corporate Rescue we published a 'what you need to know at a glance' on the UK Government’s August bank holiday announcement. The Government stated that new legislation for restructuring would be introduced as soon as parliamentary time permits. These measures could have a very significant effect on the UK’s restructuring and insolvency framework – aligning (at least in theory) the UK’s restructuring framework much more with the US Chapter 11 regime. In this article, we delve deeper into the reform proposals and provide a critical analysis of the provisions (in so far as it is possible given that so far there is merely a Government announcement and no detailed drafting).
New restructuring tools
Two new restructuring tools will be introduced: (i) a restructuring plan; and (ii) a restructuring moratorium. The former represents a major change to the restructuring toolkit introducing cross class cram down and is an exciting and long-lobbied for development for the UK.
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