Chase Cambria
  • Log in
  • Not a member yet?
go
  • Contact
  • Webmail
  • Archive
 
  • Home
  • Overview
  • Journal Issues
  • Subscriptions
  • Editorial Board
  • Author Guidelines

International Corporate Rescue

Journal Issues

  • Vol 1 (2004)
  • Vol 2 (2005)
  • Vol 3 (2006)
  • Vol 4 (2007)
  • Vol 5 (2008)
  • Vol 6 (2009)
  • Vol 7 (2010)
  • Vol 8 (2011)
  • Vol 9 (2012)
  • Vol 10 (2013)
  • Vol 11 (2014)
  • Vol 12 (2015)
  • Vol 13 (2016)
  • Vol 14 (2017)
  • Vol 15 (2018)
  • Vol 16 (2019)
  • Vol 17 (2020)
  • Vol 18 (2021)
  • Vol 19 (2022)
  • Vol 20 (2023)
  • Vol 21 (2024)
  • Vol 22 (2025)
  •         Issue 1
  •         Issue 2

Vol 22 (2025) - Issue 2

Article preview

The English Restructuring Plan: A Tool to Resolve Financial Distress in India?

Dhananjay Kumar, Partner & Head of Restructuring & Insolvency, Cyril Amarchand Mangaldas, Mumbai, India, and Gautam Sundaresh, Associate, Kirkland & Ellis International LLP, London, UK

Synopsis
While India’s new restructuring regime under the Insolvency and Bankruptcy Code, 2016 ('IBC') saw huge success initially, it has become a less attractive option over time for various reasons including huge delays and inconsistency in judicial decision-making.
A quicker and more efficient alternative is therefore the need of the hour. This article explores the ossibility of using an English restructuring plan ('English RP') as a potential solution. It offers a comparison of the two legal regimes and highlights the benefits and new technologies offered by the English RP, in addition to the various considerations that stakeholders need to keep in mind when resorting to this option. It would be a tactical decision as to which option to choose in a given scenario, given the differences in how the two regimes deal with stakeholder rights, which is discussed here in some detail.
Unlike the IBC (which does not apply to foreign companies), the English RP is available to non-English companies as long as a 'sufficient connection' test is met. In addition to considering the requirements to be met for invoking the jurisdiction of English courts for a restructuring plan in respect of Indian companies, this article also analyses potential issues in relation to recognition of such English court judgments in India. While India currently lacks a cross border insolvency framework for recognition of foreign insolvency proceedings, this Notes article highlights the possibility of achieving recognition via the application of comity. While not having been previously applied in the context of an English RP, the article discusses the jurisprudential evolution of the principle in insolvency cases and concludes that this is potentially available for achieving recognition today. The article also sets the stage for a more robust mechanism of recognition through a separate cross border insolvency framework which is expected to be introduced in the near future.

Buy this article
Get instant access to this article for only EUR 55 / USD 60 / GBP 45
Buy this issue
Get instant access to this issue for only EUR 175 / USD 230 / GBP 155
Buy annual subscription
Subscribe to the journal and recieve a hardcopy for
EUR 730 / USD 890 / GBP 560
If you are already a subscriber
log In here

International Corporate Rescue

"International Corporate Rescue is the ultimate legal and commercial guide through the maze of complex cross border insolvency and restructuring issues."

William Q Derrough, Managing Director and Co-head of Recapitalization & Restructuring Group, Moelis & Company, New York

 

 

Copyright 2006 Chase Cambria Company (Publishing) Limited. All rights reserved.