Judicial Discretion in Part 26A Restructuring Plan Procedures

27 Pages Posted: 17 Mar 2022 Last revised: 3 Aug 2022

See all articles by Sarah Paterson

Sarah Paterson

London School of Economics - Law School

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

Paterson, Sarah, Judicial Discretion in Part 26A Restructuring Plan Procedures (January 24, 2022). Available at SSRN: https://ssrn.com/abstract=4016519 or http://dx.doi.org/10.2139/ssrn.4016519

Sarah Paterson (Contact Author)

London School of Economics - Law School ( email )

Houghton Street
London WC2A 2AE, WC2A 2AE
United Kingdom

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