For many years, a financially distressed company unable to agree a consensual restructuring with its key creditors had only two formal options available to it under English law as part of seeking to survive as a going concern: a scheme of arrangement (a ‘scheme’) or a company voluntary arrangement (a ‘CVA’).
A third option was recently added, in the form of a rescue and reorganisation procedure (a ‘restructuring plan’ or ‘plan’) under the Corporate Insolvency and Governance Act 2020 (‘CIGA’), which came into force on 26 June 2020.
Our guide sets out a comparison of the key features and practical uses of each of these options.
