The Corporate Insolvency and Governance Act 2020 (CIGA) ushered in a flexible restructuring compromise or arrangement for companies in financial difficulty (the Restructuring Plan). The legislation governing the Restructuring Plan sits alongside that for schemes of arrangement and is included in a new Part 26A to the Companies Act 2006.
The Restructuring Plan does not apply to companies that are solvent with no risk of insolvency; rather it only applies to companies where two conditions have been satisfied:
- condition A: the company has encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect, its ability to carry on business as a going concern; and
- condition B: a compromise or arrangement …
Read the full article at: https://www.mayerbrown.com/ja/insights/blogs/2020/09/restructuring-plan-for-companies-in-financial-difficulty-under-the-corporate-insolvency-and-governance-act-2020