UK's Proposed Corporate Restructuring Regime Follows European-Style Chapter 11 and Debtor-in-Possession Trend
The UK Government has announced proposals to introduce a new UK restructuring plan and moratorium, together with certain other changes to the corporate governance regime relevant to companies in distress. In addition, insolvency termination clauses will in certain circumstances no longer be enforceable in the event that one party to a contract enters into an insolvency proceeding.
When implemented, the proposals could have a significant impact on the UK restructuring landscape and are likely to be of crucial importance to all stakeholders. The proposed changes reflect the general European trend in favour of debtor-led restructuring proceedings, and they mark a notable shift in the United Kingdom away from creditor-led processes that have historically dominated the UK restructuring market.
This Jones Day White Paper reviews the proposals and explains the possible next steps towards implementation.
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