Companies Act Schemes of Arrangement and Rescue: The Lost Cousin of Restructuring Practice?

Butterworths Journal of International Banking and Financial Law (JIBFL), Forthcoming

12 Pages Posted: 16 Jan 2009 Last revised: 3 Jun 2009

Date Written: January 15, 2009

Abstract

It is an axiom of English corporate insolvency law that rescue of the company is the paramount consideration for insolvency practitioners and directors. This approach is evidenced by the legislative reforms introduced by the Enterprise Act 2002 in the realm of administration and more recently by Mr Alistair Darling MP’s announcement that Company Voluntary Arrangements (CVAs) with moratoriums are to be reformed following a consultation that will start in June 2009. Recent reform activity in the area of company law has also affected restructuring practice. Section 895 of the Companies Act 2006 replaces the scheme of arrangement provisions in s.425 Companies Act 1985. There have been a number of calls for reform of the scheme of arrangement provisions so as to make them more useful for facilitating company rescue. In this article these reforms, and some supposed missed opportunities, are critically examined.

Keywords: schemes of arrangement, chapter 11, restructuring, company, insolvency, bankruptcy, debtor, creditor

JEL Classification: K00

Suggested Citation

Tribe, John Paul, Companies Act Schemes of Arrangement and Rescue: The Lost Cousin of Restructuring Practice? (January 15, 2009). Butterworths Journal of International Banking and Financial Law (JIBFL), Forthcoming, Available at SSRN: https://ssrn.com/abstract=1328487 or http://dx.doi.org/10.2139/ssrn.1328487

John Paul Tribe (Contact Author)

University of Liverpool ( email )

Brownlow Hill
Liverpool, L69 3BX
United Kingdom

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