Judicial Discretion in Part 26A Restructuring Plan Procedures
27 Pages Posted: 17 Mar 2022 Last revised: 3 Aug 2022
Date Written: January 24, 2022
Abstract
The Corporate Insolvency and Governance Act 2020 (CIGA) introduced a restructuring plan procedure into UK law, closely modelled on schemes of arrangement but with certain, significant differences including the introduction of a cross-class cram down power. The Explanatory Notes to CIGA state that judges have a discretion as to whether to sanction a restructuring plan over the objections of a dissenting class, even where the statutory conditions for cram down have been met, but offer limited further guidance. An examination of the legislation and scheme cases is undertaken to develop a decision-making framework within which this discretion can be exercised.
Keywords: corporate restructuring, corporate reorganization, corporate reorganisation, corporate insolvency, scheme of arrangement, restructuring plans, judicial discretion
JEL Classification: K22
Suggested Citation: Suggested Citation