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A new option for financially distressed companies: the new restructuring plan

13 October 2020

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.

Publication
A new option for financially distressed companies
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Authors

Picture of Martin Brown
Martin Brown
Partner
London
Glen Flannery
Glen Flannery
Partner
London
JulianTurner
Julian Turner
Consultant
London
Picture of Peter Wiltshire
Peter Wiltshire
Partner
London
Picture of Sian Aitken
Sian Aitken
Partner
Edinburgh
Kelly Rothwell
Kelly Rothwell
Senior Associate
London
Timea Scholey
Timea Scholey
Senior Associate
London
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