A restructuring plan is a new restructuring tool introduced into Part 26A of the Companies Act 2006 in June 2020 by the Corporate Insolvency and Governance Act 2020. It constitutes an “arrangement” or “compromise” between the company and its stakeholders and will result in a reduction or reshaping of the liabilities owed to those stakeholders.
The process for a restructuring plan is very similar to the well-established “scheme of arrangement” regime, with stakeholders split into classes in respect of both their treatment under the proposal and for voting purposes. However, unlike a scheme of arrangement, a restructuring plan allows for dissenting classes of stakeholders to be bound in certain circumstances. This is known as “cross-class…
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