Cross-Border Schemes of Arrangement and Forum Shopping

32 Pages Posted: 12 Jun 2013 Last revised: 9 Sep 2013

See all articles by Jennifer Payne

Jennifer Payne

University of Oxford - Faculty of Law

Date Written: September 9, 2013

Abstract

In recent years there has been a growth in the use of English schemes of arrangement by companies registered in other EU Member States. High profile recent examples include TeleColumbas GmbH, Rodenstock GmbH, and Primacom Holdings GmbH. In each case these companies were able to access the English scheme jurisdiction without shifting their seat or COMI to the UK. This paper investigates this phenomenon, considering the use of an English scheme of arrangement and why it might be regarded as valuable to these companies. The paper then tackles two issues. First, it assesses how these companies are able to access the English scheme jurisdiction, and, in particular, it analyses the potential application of both the Insolvency Regulation and the Judgments Regulation in this regard. As part of this analysis the recognition and enforcement of English schemes of arrangement in other Member States is discussed. Second, it considers whether this use of English schemes gives rise to issues of forum shopping. This paper rejects the idea that forum shopping should be regarded as a concern in this context.

Keywords: schemes of arrangement, debt restructuring, cross- border, Judgments Regulation, Insolvency Regulation, forum shopping

Suggested Citation

Payne, Jennifer, Cross-Border Schemes of Arrangement and Forum Shopping (September 9, 2013). Oxford Legal Studies Research Paper No. 68/2013. Available at SSRN: https://ssrn.com/abstract=2277451

Jennifer Payne (Contact Author)

University of Oxford - Faculty of Law ( email )

Oxford
United Kingdom

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