Companies restructuring debt governed by English law, or with a sufficient connection to England, can often choose between a scheme of arrangement and a restructuring plan. This article outlines the practical questions that usually decide which to use.
Who needs to agree
The two procedures treat dissenting classes differently. Understanding how the classes are likely to vote, and whether dissenting classes can be bound, is the starting point.
Time and cost
Contested cases take longer and cost more. Early engagement with key creditors can narrow the issues the court must decide.
Recognition abroad
Where assets or creditors are outside the United Kingdom, recognition of the English process in other jurisdictions needs to be planned alongside the process itself.
This publication is general information, not legal advice. It may not reflect later developments. Contact a lawyer about your circumstances.