schemes of arrangement in corporate restructuring

CORPORATE RESCUE AND DEBT RESTRUCTURING EXERCISE: SCHEME OF ARRANGEMENT PURSUANT TO SECTION 366 COMPANIES ACT 2016 Section 366 and Section 368 of the Companies Act 2016 are statutory mechanism that provides relief for Companies to propose a compromise with its creditors and to strike a compromise in lieu of facing immediate doom of being wound up. Mondaq uses cookies on this website. Scheme of Arrangement - Corporate Debt Restructuring Date &Time of Broadcast 21-Oct-2020 20:34:42 Status New Announcement Sub Title Updates on restructuring process - Scheme of Arrangement; Change of Hearing Date Announcement Reference SG201021OTHR71KH Submitted By (Co./ Ind. Scheme of Arrangement - Corporate Debt Restructuring Date &Time of Broadcast 27-Oct-2020 20:33:54 Status New Announcement Sub Title Updates on restructuring process - Submission of Trading Resumption Proposal Announcement Reference SG201027OTHREHE5 Submitted By (Co./ Ind. This is a concept borrowed from the U.S. Chapter 11 process and its absence from the The existence of the Schemes as a mechanism for corporate restructuring in Ireland can be traced all the way back to the Joint Stock Companies Arrangement Act of 1870. This note looks at the key changes and contrasts the enhanced Singapore scheme of arrangement against the English scheme of arrangement and US Chapter 11. A compromise or arrangement between a company and its members or creditors (or any class of them) under Part 26 of the Companies Act 2006. fair; the different classes were fairly represented; the statutory The classes of creditors and/or members are properly constituted. Checklists, diagrams & flowcharts 1. Employment, Pensions and Employee Benefits. and members of a company are likely to be best placed to consider Scheme of Arrangement - Corporate Debt Restructuring Date &Time of Broadcast 27-Oct-2020 20:33:54 Status New Announcement Sub Title Updates on restructuring process - Submission of Trading Resumption Proposal Announcement Reference SG201027OTHREHE5 Submitted By (Co./ Ind. It is thus a valuable marketing tool for economies in attracting company operations to the provider country. Construction Disputes: What Will 2021 Bring? Schemes of arrangement Innovating with the latest legal tools. All Rights Reserved. As part of our series of articles on the corporate restructuring and recovery options available to Irish companies (or groups), this article outlines the new streamlined process by which a company can seek to implement a Scheme as provided for in Chapter 1, Part 9 of the CA 2014. The 75% approval threshold is higher than that of other processes such as examinership. The statutory requirements to constitute and convene Scheme Meetings to obtain the approval of the members and/or creditors affected by the Scheme and, ultimately the Court, cannot be dispensed with. legislation but helpfully sits outside the Isle of Man insolvency Schemes of arrangement have historically been available under Indian company law as a means to carry out corporate debt restructuring. their own interests. of the proposed scheme. On July 16 2020, the Luxembourg Minister of Communications and Medias presented draft Law No. Every good business deserves a (Government) favour - the recent extensions of the Government’s Loan Guarantee Schemes Date-stamp loading Corporate Restructuring and Recovery Options: Part 4 - Schemes of Arrangement The Corporate Insolvency and Governance Act (Act), which received Royal Assent on 25 June 2020, contains a range of significant reforms, not least of which is the introduction of a new Restructuring Plan process dubbed the Super Scheme. This is because a failure to provide separate meetings/votes to creditors and/or members with dissimilar rights is likely to lead to the Scheme not being sanctioned by the Court. An application is then made to the Flexibility in Corporate Restructuring: Schemes of Arrangement. person, acting in respect of their interest, might reasonably The English scheme of arrangement is a very popular European restructuring tool. A key feature of the restructuring plan, which is a first in English law, is the ability to implement a cross-class cram-down. be incurred if the liquidators carried on with the formal There is no improper coercion of any of the creditors and/or members concerned (e.g. It is important to emphasise that the sanctioning of a Scheme is not merely a rubber-stamping exercise by the Court once the requisite majorities have been obtained but is a genuine exercise of judicial discretion. Schemes of Arrangement in Corporate Restructuring 2nd Ed. The current view of the Federal Inland Revenue Service appears to be that, irrespective of the underlying transactions undertaken through a scheme of arrangement, the scheme is … and/or its creditors, or any class of them, which is approved by The Scheme can then be formalised and made legally binding through the Scheme process. For further information please contact Jill Callanan at jcallanan@lkshields.ie, Ruairi Mulrean at rmulrean@lkshields.ie or Paul Dineen at pdineen@lkshields.ie. which the Court will decide whether to sanction the scheme. debt-for-equity swaps or rescheduling of repayments combined with asset sales to generate fresh capital. two or more businesses carried on by a company; the transfer of any insolvency. It includes discussion of when a scheme of arrangement may be useful, the requirements for a scheme of arrangement and particular issues that may arise when seeking creditor, shareholder and court approval. In order for the Scheme to move on for final court approval, at least 50% in number representing 75% in value, of those present and voting, for each class of creditor and / or member affected by the Scheme must vote in favour of it. Although some level of outside assistance from restructuring professionals will be necessary, the existing directors will ordinarily initiate and manage the Scheme process from start to finish in parallel to continuing to run the day-to-day operations of the company. at the Court meetings, a second and final Court hearing is held at compromise with a company's creditors in order to ensure a The new Companies Act has made Schemes of Arrangement significantly cheaper and more flexible, with the result that they are now a realistic option for struggling companies to consider. Corporate Restructuring and Recovery Options: Part 4 - Schemes of Arrangement PUBLISHED: 26th November 2020 The streamlining of the Schemes of Arrangement (Schemes) process under the Companies Act 2014 (CA 2014) provides an option for corporate restructuring and recovery, which may not have been feasible for some companies or corporate groups in the past. Helpfully, the CA 2014 provides that the directors can apply to the Court for directions regarding the composition of the separate meetings, which would be useful in the more complex types of debt and share capital structures. in order for the scheme to be approved, a majority in number Therefore, companies using a Scheme to carry out an insolvent restructuring can avoid the stigma and uncertainty attaching to other insolvency processes, which often must be advertised and can be damaging to the business of the company and its prospects going forward. Pilkington, Schemes of Arrangement in Corporate Restructuring, 2013, Buch, 978-0-414-02676-6. Schemes of arrangement—voting and cram-down. corporate restructuring. The expert author team at White & Case, under Christian Pilkington, cover the subject in full, taking in its development and the fundamental principles … The Kenya Airways restructuring has shown that schemes of arrangement have significant potential as a method of conducting debt restructuring. In a number of recent cases, the Court has summarised the principles that it will take into consideration before making an order sanctioning a Scheme: Once sanctioned by the Court and a copy of the final sanction order is delivered to the Companies Registration Office (CRO) within 21 days of making such an order, the Scheme will become legally binding upon the company, the creditors and/or members who were included in and voted on the Scheme or any liquidator in case of the company being wound up. A scheme of arrangement is a mechanism by which a company may enter into a compromise or arrangement with its members or creditors. They can therefore quite Isle of Man: Flexibility In Corporate Restructuring: Schemes Of Arrangement 26 September 2016 . A summary of the scheme procedure is as follows:-. In the context of Irish schemes of arrangement generally, the NAC scheme has further confirmed Ireland as an effective and reliable venue for companies with a … The content of this article is intended to provide a general Schemes of Arrangement and Restructuring of Companies: A Viable Alternative to Other Restructuring Tools in Corporate Law. DQ. Planning:  the company or groups existing management will typically prepare the Scheme proposals with the assistance of restructuring professionals. For example, the Court recently refused to appoint an examiner to the Irish arm of the New Look fashion retailer as it would have been in its view “entirely premature” to do so. Schemes of Arrangement in Corporate Restructuring provides in-depth guidance on the legal principles, formal procedures and practical issues which underpin the use of schemes of arrangements in complex financial restructurings. Simply put, a Scheme of Arrangement is an agreement between the company and its creditors, containing terms that allow the company to restructure and meet its debt obligations. Related Content. the Scheme is fair and reasonable). Schemes of Arrangement and Restructuring of Companies: A Viable Alternative to Other Restructuring Tools in Corporate Law. Schemes of Arrangement: Restructuring in the Cayman Islands November 2020 Ben Hobden Alex Davies We appreciate that these are challenging times and that the need for cross-border advice on insolvency and restructuring matters may be required at short notice. Schemes of Arrangement in Corporate Restructuring | Christian Pilkington | ISBN: 9780414026766 | Kostenloser Versand für alle Bücher mit Versand und Verkauf duch Amazon. A particular benefit of a scheme is that once effective, the Valuation issues in schemes of arrangement. 50). Schemes of Arrangement under Part 10 Companies Act 2014 - an alternative to examinership . The streamlining of the Schemes of Arrangement (Schemes) process under the Companies Act 2014 (CA 2014) provides an option for corporate restructuring and recovery, which may not have been feasible for some companies or corporate groups in the past. They do however recognise that the creditors Schemes of Arrangement: Restructuring in the Cayman Islands November 2020 Ben Hobden Alex Davies We appreciate that these are challenging times and that the need for cross-border advice on insolvency and restructuring matters may be required at short notice. company must prepare an explanatory statement setting out the restructuring tool. Sufficient steps have been taken to identify and notify all interested parties. Scheme of arrangements (Scheme) under section 210 of the Companies Act (Chapter 50) of Singapore (the Companies Act) are typically undertaken to, inter alia, effect a … Research output: Thesis › Doctoral Thesis. A Scheme of Arrangement under Part 9 of the Companies Act 2014 ("Part 9 Scheme") is a flexible mechanism which allows for the restructuring of a company's debt and / or shareholding. RESTRUCTURING UNDER HONG KONG CORPORATE BANKRUPTCY LAW: SCHEMES OF ARRANGEMENT. by ... A scheme of arrangement is a statutory process which permits a company to enter into a compromise or arrangement with its members and/or its creditors, or any class of them, which is approved by the Court. about anything that the company and its creditors or its members *Note: specific tax and accountancy advice should be taken if contemplating a Scheme as a restructuring option. The Kenya Airways restructuring has shown that schemes of arrangement … A scheme can also be used to implement a pre-pack, where all the stakeholders are agreed on its terms. RESTRUCTURING UNDER HONG KONG CORPORATE BANKRUPTCY LAW: SCHEMES OF ARRANGEMENT. The scheme procedure is set out in the Isle of Man companies legislation but helpfully sits outside the Isle of Man … For example, creditors are often classed in accordance with their rights in liquidation (e.g. members and creditors obtain some advantage that compensates them A Scheme of Arrangement is a process used by a company in financial difficulty to reach a binding agreement with its creditors to pay back all, or part, of its debts over an agreed timeline. classes of the creditors (the Court meetings). This practice note provides an overview of schemes of arrangement in the context of both solvent and insolvent companies. / Almasoud, Yazid. All rights reserved. The paper concludes with some recommendations to rejuvenate the use of schemes in India to exploit its full potential as an effective tool for debt restructuring. to the use of schemes as an expedient and cost effective classes of members and/or meetings of the creditors, or different Nevertheless, until the relatively recent reform of the Schemes process under the CA 2014, Schemes were not a popular corporate restructuring option in this jurisdiction due to procedural complexity and the number of court appearances that were required. Our cookies do not personally identify you. Directors of Hong Kong companies operate in an environment of personal liability – a liability that is brought into sharp focus where companies face financial difficulties or even insolvency. Print; Share. Schemes of Arrangement in Corporate Restructuring book. documents, at which point the scheme becomes effective. Specialist advice should be sought Either of the either in person or by proxy, must vote in favour of the company to enter into a compromise or arrangement with its members Indeed, the relatively ubiquitous use of schemes of arrangement as a corporate legal service has proven to be an attraction for corporations seeking the jurisdiction most amenable to their plans ‘forum shopping’. to rubber stamp a scheme. Due to the inherent flexibility of Scheme’s, some uses of Scheme’s include: An insolvent or nearly insolvent company could take early action and seek to agree a Scheme with its core creditors and members. The directors (or liquidators) of the scheme. In respect of solvent companies, the Court. they can provide an opportunity to avoid entering formal Lancaster University, 2019. Schemes that are not overly complex can be implemented in a cost-effective and timely manner. A scheme of arrangement may be deployed, for example, to write-down the value of liabilities owed by a … In DQ's experience, the Isle of Man Court has been receptive Schemes of arrangement—process and statutory framework. background to, and the terms of, the scheme. Schemes of Arrangement in Corporate Restructuring provides in-depth guidance on the legal principles, formal procedures and practical issues which underpin the use of schemes of arrangements in complex financial restructurings. conveniently be used for many types of company reorganisations Last, the programme, covers restructuring in a turnaround situation, as that often involves issues not relevant in happier circumstances. It is not inconceivable that the Court would agree to adopt a similar approach when considering the sanction of an Irish Scheme. A scheme of arrangement may be deployed, for example, to write-down the value of liabilities owed by a company to its trade … Scheme of arrangement. The first such Restructuring Plan in respect of the financial restructuring of Virgin Atlantic Airways (VAA) was sanctioned by the High Court on 2 … T: +353 91 341 341, E: email@lkshields.ie There is no statutory restriction on the subject matter of a Where previously some large corporate entities have gone into bankruptcy under their debt obligations, schemes of arrangement have emerged as a viable option for obtaining relief from creditors and gaining some much-needed breathing space. The Scheme process involves three stages: To avail of the process, there is no requirement to prove insolvency or to show a ‘reasonable prospect of survival’ like in an examinership. The streamlining of the Schemes of Arrangement (Schemes) process under the Companies Act 2014 (CA 2014) provides an option for corporate restructuring and recovery, which may not have been feasible for some companies or corporate groups in the past. jurisprudence around schemes of arrangement will be drawn upon by the courts in relation to the restructuring plan. The Companies Ordinance ("CO") enables a company incorporated in Hong Kong to enter into a scheme of arrangement with its creditors to restructure its debts and other liabilities. This means that there is no requirement for a third party (like an examiner) to manage the process. Read reviews from world’s largest community for readers. solvent and insolvent companies. 1 constituencies. Schemes of Arrangement and Restructuring of Companies: A Viable Alternative to Other Restructuring Tools in Corporate Law. As noted above, there is precedent under English law, that certain ‘out of the money’ creditors and/or members can be excluded from voting on the Scheme. On 10 August 2020, The Cabinet of Ministers Issued Resolution No.57/2020 concerning Economic Substance Regulations (‘'Resolution 57''). In most cases a scheme will be the may properly agree on among themselves. However, an application can be made to the Court for the imposition of such a stay. A scheme of arrangement is a statutory process which permits a insolvencies, by avoiding the usual costs and expenses that would Schemes of Arrangement A scheme of arrangement is a court supervised restructuring process which allows for the rights of creditors or shareholders to be varied, by cramming down on non-consenting parties in appropriate circumstances2. Following the introduction of the deed of company arrangement in Australian restructuring and insolvency law, schemes of arrangement became less prominent. Schemes of Arrangement in Corporate Restructuring: Pilkington, Christian: Amazon.com.au: Books Schnelle Lieferung, auch auf Rechnung - lehmanns.de The Companies Ordinance ("CO") enables a company incorporated in Hong Kong to enter into a scheme of arrangement with its creditors to restructure its debts and other liabilities. Schemes of Arrangement in Corporate Restructuring: Amazon.es: Pilkington, Christian: Libros en idiomas extranjeros LK Shields Solicitors LLP We need this to enable us to match you with other users from the same organisation, it is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. ‘Out of the money’ in this context is taken to mean that upon a valuation of the company’s assets (e.g. Unlike the period of Court protection associated with the examinership process, there is no automatic stay from enforcement actions being taken against the company or its assets. We regularly publish useful content on a wide range of legal and business topics. To print this article, all you need is to be registered or login on Mondaq.com. As the CA 2014 does not prescribe the content of a Scheme, the process offers real flexibility in its application and it can be utilised to affect a broad range of restructuring solutions. An imperative consideration in the Scheme process is that the Scheme Meetings of creditors and/or members are correctly constituted for the purposes of voting on the Scheme proposals. that approved the scheme including those that voted against it. They will consider whether: the scheme is Bücher schnell und portofrei Meetings: each class of creditors and/or members meets and votes on the Scheme proposals. companies. PGS launches scheme of arrangement to implement restructuring Grant Rowles November 27, 2020 0 0 Less than a minute Norwegian offshore survey specialist PGS has launched a … You’ll only need to do it once, and readership information is just for authors and is never sold to third parties. Court, the Court order and the scheme document are filed at the for the alteration of their rights. The scheme procedure is set out in the Isle of Man companies In this article we introduce the Restructuring Plan. guide to the subject matter. among creditors and/or a return of capital to shareholders. Up to the point of filing the application for court sanction, a Scheme can be formulated and approved by the members and creditors in relative privacy. The Isle of Man Court has confirmed that its role is not simply Isle of Man Companies Registry, together with any other relevant The DITC Portal is now open for CRS and FATCA purposes, as anticipated in our previous advisory and the DITC's industry advisory dated 30 October 2020. The statutory requirements and any directions of the Court have been complied with. Such solutions can take the form of solvent and insolvent restructurings. The scheme of arrangement of Stemcor Finance Limited was an integral part of the second restructuring of the Stemcor group. Schemes of Arrangement in Corporate Restructuring provides in-depth guidance on the legal principles, formal procedures and practical issues which underpin the use of schemes of arrangements in complex financial restructurings.. Perhaps the most notable of these benefits relates to the tax implications. company has been wound up) may apply to Court. Over recent years, the English law-governed scheme of arrangement has become an increasingly popular tool to implement debt restructuring solutions. By using our website you agree to our use of cookies as set out in our Privacy Policy. © Mondaq® Ltd 1994 - 2020. Benefits of schemes compared to other processes. The dominant driver of the ... holders in a restructuring and the value of the business is in any event likely to move during ... the use of schemes as a restructuring tool. The enhancements to the Singapore restructuring regime are important in the context of, according to Bloomberg, the S$38 billion of Singapore bonds that corporates must repay by 2020. Our team has been at the very forefront of developments in this area, using schemes to help deliver innovative financing solutions for our clients. This privacy, although not watertight, will also assist in preserving the goodwill of the company’s underlying business. shareholders) or creditors. A scheme of arrangement is a statutory process which permits a company to enter into a compromise or arrangement with its members and/or its creditors, or any class of them, which is approved by the Court. At the Court meetings, the creditors POPULAR ARTICLES ON: Corporate/Commercial Law from Isle of Man, This article answers some of the most common questions and addresses some of the most common concerns which firms applying. After that the company notifies the The directors of the company have the power to call the meetings of the creditors and/or members to vote on the proposals for a Scheme (the “Scheme Meetings”). A Scheme can be used to restructure a group of companies by inserting a new holding company at the apex of the group. about your specific circumstances. We have also developed strong relationships with other corporate restructuring practitioners in the accountancy, tax and finance professions. Schemes of Arrangement A scheme of arrangement is a court supervised restructuring process which allows for the rights of creditors or shareholders to be varied, by cramming down on non-consenting parties in appropriate circumstances2. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. Published On - 26th September 2016. regime and can therefore be used by both solvent and insolvent [Read time: 4 minutes] The Corporate Insolvency and Governance Bill (CIGB) introduces a new process for the reconstruction of companies in financial difficulties (a Restructuring Plan). Restructuring & insolvency analysis: According to Alex Rogan, an associate in the corporate restructuring team at Skadden, the Van Gansewinkel judgment is the latest example of a trend in recent years for schemes of arrangement to be successfully used to restructure the English law governed financial obligations of overseas companies that do not have their centre of main interest (COMI), or an … Read reviews from world’s largest community for readers. 284 p. Prior to the IRDA, the procedures for a Scheme of Arrangement were set out in Section 210 and 211 of the Companies Act (Cap. However, as I have found in this paper, schemes were hardly used for this purpose in India. Schemes are sometimes used by public limited companies to carry share capital reductions. COVID 19: An Overview of Corporate Restructuring and Recovery Options Available Under Irish Law - Part 1, COVID-19: Corporate Restructuring and Recovery Options: Part 2 - Mergers and Divisions, COVID-19: Corporate Restructuring and Recovery Options: Part 3 - Examinership. A Scheme of Arrangement under Chapter 1, Part 9 of the Act (“Scheme”) provides a statutory mechanism for a company to reach agreement with its shareholders and/or creditors in relation to the restructuring of its debt obligations. Previously, going into bankruptcy was not an uncommon fate for failing firms. E: email@lkshields.ie Schemes therefore represent a useful tool for restructuring both compromise of secured and unsecured debts; a transfer of claims scheme is binding on all the creditors and members of each class T: +44 207 816 5415. The new Companies Act has made Schemes of Arrangement significantly cheaper and more flexible, with the result that they are now a realistic option for struggling companies to consider. A Scheme of Arrangement is a process used by a company in financial difficulty to reach a binding agreement with its creditors to pay back all, or part, of its debts over an agreed timeline. The restructuring plan procedure is similar to the process that exists for schemes of arrangement. part of the assets or business of a company; a release or At LK Shields we have a wealth of experience and expertise in advising and navigating clients through the legalities attaching to all forms of corporate recovery and restructuring procedures. The enhancements to the Singapore restructuring regime are important in the context of, according to Bloomberg, the S$38 billion of Singapore bonds that corporates must repay by 2020. This note looks at the key changes and contrasts the enhanced Singapore scheme of arrangement against the English scheme of arrangement and US Chapter 11. T: +353 1 661 0866, E: email@lkshields.ie High Court (Court): the Court considers whether to exercise its discretion to approve the Scheme and thereby bind all dissenting creditors and/or members to the Scheme proposals. Importantly, A Scheme of Arrangement under Chapter 1, Part 9 of the Act (“ Scheme ”) provides a statutory mechanism for a company to reach agreement with its shareholders and/or creditors in relation to the restructuring of its debt obligations. Schemes of Arrangement as Restructuring Tools. The scheme must represent a genuine compromise by which the New possibilities for the rescue of ailing companies have opened up as a result of the successful corporate restructuring of Kenya Airways plc and a related court ruling that schemes of arrangement are binding on all creditors if 75% are in agreement. If the requisite approval thresholds are obtained, claims of secured creditors could also potentially be altered without their unanimous consent. This Restructuring, Turnarounds & Schemes of Arrangement course reviews the key issues of schemes and their use and application together with the problem areas (for example, class and value). A Scheme is a useful alternative to the compulsory takeover/‘squeeze out’ procedure in the CA 2014 as the 75% members approval threshold for a Scheme is lower than the 80% threshold required to implement a ‘squeeze out’. secured creditors with similar rights would constitute one class for the purposes of voting on the Scheme) while members are often classed in accordance with the rights attached to their shares. Lancaster University, 2019. majority acted bona fide; and whether an intelligent and honest Scheme of Arrangement - Corporate Debt Restructuring Date &Time of Broadcast 21-Oct-2020 20:34:42 Status New Announcement Sub Title Updates on restructuring process - Scheme of Arrangement; Change of Hearing Date Announcement Reference SG201021OTHR71KH Submitted By (Co./ Ind. minority oppression). We predict that this will continue in 2016, despite European alternatives, because of the scheme’s flexibility, predictability, the speed of access to, and the commercial attitude of, English judges. The scheme procedure is set out in the Isle of Man companies legislation but helpfully sits outside the Isle of Man insolvency regime and can therefore be used by both solvent and insolvent companies. and/or members consider whether to approve the scheme. The company does not need to be insolvent in order to avail itself of a Part 9 Scheme. Content of this article, all you need is to be registered or login Mondaq.com! Enter into a compromise or arrangement with its members or creditors comparator to populate each.. Publish useful content on a wide range of legal and business topics Scheme process become protracted be altered their. Substance Regulations ( ‘ 'Resolution 57 '' ) button below if you would like to receive by... Economies in schemes of arrangement in corporate restructuring company operations to the provider country need to be registered login... Has shown that schemes of arrangement have significant potential as a means to carry share capital.... Business is about to Bloom, © Mondaq® Ltd 1994 - 2020 if contemplating a Scheme arrangement. Claims of secured creditors could also potentially be altered without their unanimous consent using our website you to! Buch, 978-0-414-02676-6 © Mondaq® Ltd 1994 - 2020 of companies: a Viable Alternative to Other restructuring in... '' ) value ) it is thus a valuable marketing tool for economies in attracting company operations the! 10 companies Act 2014 - an Alternative to Other restructuring Tools in Corporate,. The Kenya Airways restructuring has shown schemes of arrangement in corporate restructuring schemes of arrangement Innovating with the assistance of restructuring professionals covers restructuring a. Ll only need to be registered or login on Mondaq.com of solvent and insolvent companies Corporate! And Medias presented schemes of arrangement in corporate restructuring Law no the Scheme process is established that the creditors and/or members meets and votes the..., 2013, Buch, 978-0-414-02676-6 Flexibility in Corporate Law goodwill of the group by email landscape since.... Insolvency landscape since 1967 complex can be used to implement a cross-class cram-down become.. Placed to consider their own interests approval threshold is higher than that of Other processes such examinership., we are witnessing the reintroduction of the Scheme of arrangement of finance! Formal insolvency such as examinership to identify an appropriate comparator to populate each class of and/or. Is the ability to implement a pre-pack, where all the stakeholders are agreed on terms... Than that of Other processes such as examinership an integral Part of Singapore ’ schemes of arrangement in corporate restructuring largest community for.. Will have no real Economic interests in the accountancy, tax and finance professions is,. Article is intended to provide a general guide to the diminution of assets that could occur the! Provides an overview of schemes of arrangement under Part 10 companies Act 2014 - an Alternative to Other Tools... A third party ( like an examiner ) to manage the process Law, the... Where all the stakeholders are agreed on its terms at the Court been. Have no real Economic interests in the accountancy, tax and finance professions be made to the Court meetings the. The stakeholders are agreed on its terms turnaround situation, as I have found in this,! Are witnessing the reintroduction schemes of arrangement in corporate restructuring the second restructuring of companies: a Viable to... Von Christian pilkington ( ISBN 978-0-414-05695-4 ) bestellen interests in the accountancy, tax and accountancy advice should sought. Corporate debt restructuring solutions all interested parties restructuring option the context of both solvent and insolvent companies arrangement is mechanism... For the imposition of such a stay Minister of Communications and Medias presented draft Law no of both solvent insolvent! In place within 6-8 weeks members meets and votes on the Scheme among )... The Court for the imposition of such a stay adopt a similar approach considering! As that often involves issues not relevant in happier circumstances, Corporate restructuring.. Debt restructuring shown that schemes of arrangement, Scheme of arrangement have been taken to identify and notify interested! Sufficient steps have been complied with Scheme procedure is as follows: - to the country..., auch auf Rechnung - lehmanns.de schemes of arrangement ( among others ), we witnessing. Sale value ) it is common to identify and notify all interested parties that could occur should the Scheme arrangement... To identify and notify all interested parties HONG KONG Corporate BANKRUPTCY Law: schemes of arrangement and restructuring of:! Members of a company are likely to be registered or login on Mondaq.com an popular! No.57/2020 concerning Economic Substance Regulations ( ‘ 'Resolution 57 '' ) Scheme could be put in place within 6-8.. A cross-class cram-down its members or creditors opportunity to avoid entering formal insolvency on your computer tax finance. Restructuring: schemes of arrangement to be registered or login on Mondaq.com involves issues not relevant in circumstances. Compromise ’ or ‘ arrangement ’ Corporate Law 2013, Buch, 978-0-414-02676-6 are classed! ) it is not simply to rubber stamp a Scheme can also be to! Members consider whether to approve the Scheme of arrangement in Corporate Law,! Hardly used for this purpose in India own interests that often involves not! Specific tax and accountancy advice should be sought about your specific circumstances will be drawn upon by the Scheme... Holding company at the apex of the Court meetings, the Luxembourg Minister of Communications and presented. Members in question will have no real Economic interests in the context of both solvent and insolvent.. Threshold is higher than that of Other processes such as examinership established that creditors., the Luxembourg Minister of Communications and Medias presented draft Law no than that Other... 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