Cramdown

A balancing Act: the UK’s new corporate insolvency and governance law

When the clock struck midnight on 25 June, the UK’s restructuring and insolvency regime suddenly looked a lot friendlier for debtors, both temporarily pending the coronavirus’ havoc on the UK economy, and permanently. But does the new legislation rushed through parliament in under a month provide a serious contender to Chapter 11’s crown, or does it merely bring the UK up-to-date with the 1970s as one practitioner suggested?

11 September 2020

Can legal liberalisation rescue businesses from covid-19 catastrophe?

Mayer Brown partners Trevor Borthwick and Devi Shah in London, Tom Pugh in Hong Kong and counsel Monique Mulcare in New York ask: is further legal liberalisation needed to stimulate the rescue of viable companies affected by the covid-19 pandemic?

07 September 2020

Virgin Atlantic plan sanction decision is published

The England and Wales High Court’s reasons for sanctioning Virgin Atlantic’s landmark restructuring plan have now been published.

07 September 2020

English court sanctions Virgin restructuring plan

Virgin Atlantic’s landmark restructuring plan has received court sanction, after a short, unopposed hearing in which the judge pressed for “respectable commercial reasons” why some trade creditors had been excluded.

02 September 2020

US appeals court weighs in on “unfair discrimination” standard in cramdown provisions

The US Third Circuit appeals court has weighed in on the little-analysed “unfair discrimination” standard applying to creditor cramdown in the US – rejecting calls from senior noteholders of Tribune media company to revise subordination payments in a plan approved eight years ago.

28 August 2020

Trade creditors approve Virgin Atlantic’s restructuring plan

Creditors have approved Virgin Atlantic’s ground-breaking restructuring plan at four virtual meetings, with 99% of trade creditors lending their support.

25 August 2020

Virgin Atlantic allowed to convene UK restructuring plan meetings

Virgin Atlantic is set to hold creditors’ meetings on its restructuring plan, the first to be implemented under the UK’s new Corporate Insolvency and Governance Act, following an English court ruling.

04 August 2020

First restructuring plan launched in UK, A&O and Houlihan lead for Virgin

Updated: Allen & Overy and Houlihan Lokey are leading Virgin Atlantic through the first-ever restructuring plan launched under the UK’s new Corporate Insolvency and Governance Act.

15 July 2020

The UK’s Corporate Insolvency and Governance Bill is law

The Corporate Insolvency and Governance Bill has received Royal Assent and is now law, after the UK parliament approved a slew of changes tabled by its upper house this week.

26 June 2020

UK Bill leaves upper house with new powers for pensions and financial creditors’ priority scaled back

An end to super-priority for financial creditors’ accelerated debts, new powers for the Pension Protection Fund, and more time for the government to regulate pre-packs: the Corporate Insolvency and Governance Bill has had the scrutiny of the UK parliament’s upper house, but as before, only the government’s tabled amendments were accepted.

24 June 2020

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