Linklaters has leading restructuring and insolvency practitioners in each jurisdiction in which it operates, comprising 30 offices across 20 countries spanning the Americas, Europe, Asia, the Middle East and Africa. Linklaters’ global restructuring and insolvency practice handles the world’s most challenging and significant domestic and cross-border restructuring and insolvency assignments.
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Insolvency Bitesize - October 2021
27 10月 2021
Welcome to the latest edition of Insolvency Bitesize. Despite a sluggish market since our last edition, Part 26A restructuring plan and CVA legal developments have been lively.Find out more on our website.
Insolvency Bitesize - July 2021
21 7月 2021
Welcome to the latest edition of Insolvency Bitesize. Despite a sluggish market since our last edition, Part 26A restructuring plan and CVA legal developments have been lively.Find out more on our website.
Hurricane Energy: a failed cram down of a debt for equity swap
30 6月 2021
Central to the High Court’s refusal to sanction the Hurricane Energy Part 26A restructuring plan was its finding that the relevant alternative was not immediate insolvency – instead, the company would continue to trade profitably for at least a year. This made it harder for the company to persuade the court that shareholders would be no worse-off under the plan than had they been left with 100% equity in a company trading profitably. It also meant the court would not, in any event, have been prepared to exercise its discretion to sanction.
What do the New Look, Regis and Virgin Active decisions mean for future restructurings?
20 5月 2021
In a significant decision, the High Court rejected the challenge brought by certain landlords against the company’s CVA in New Look. It later sanctioned the company’s Part 26A restructuring plan in Virgin Active using the procedure’s cross-class cram down power, again in the face of a group of dissenting landlords. Then came the Regis CVA challenge where this time landlords succeeded in revoking the CVA (which had already terminated) on a finding of unfair prejudice.
As these decisions are to send ripples across the restructuring market, our R&I team give their combined views.
Restructuring Plans
18 5月 2021
The Corporate Insolvency and Governance Act 2020 introduced (with effect from 26 June 2020) a new statutory cram down process into the restructuring toolkit, restructuring plans (“RPs”).
The decision in gategroup (in which Linklaters acted for the senior lenders), which involved categorising RPs as (broadly speaking) an insolvency proceeding for the purposes of the Lugano Convention, has attracted some market commentary in recent weeks.
In this briefing, we consider that decision and its practical implications.
Insolvency Bitesize - February 2021
23 2月 2021
In this first ‘new look’ Insolvency Bitesize, we reflect on what some of the key legal and market themes might be in the year ahead.
Against that backdrop, this edition focusses on a broad range of recent insolvency developments. We kick-off with a piece featuring the National Security and Investment Bill and show how it might affect insolvency sale transactions. We cover recent decisions on the extent of an administrator’s duty of care to bidders, the impact a deed of priority had on the enforceability of a floating charge for the purposes of Paragraph 16 of Schedule B1 and highlight the court’s continued development of its approach to dealing with procedural failures when appointing administrators out-of-court. We take a broad overview of insolvency developments in the financial services sector and then conclude this edition by highlighting how even post Brexit, COMI will remain a key part of the UK insolvency lexicon.
UK rules on contractual recognition of bail-in language
22 1月 2021
While the Banking Act 2009 continues to be the legislative basis for the domestic UK bail-in requirement, the rules in the PRA Rulebook for when PRA regulated financial institutions (“UK Lenders”) must include contractual recognition of bail-in (“CROB”) language changed on 31 December 2020 following the expiry of the Brexit transition period. What does this mean for facility agreements and related finance documents? Should you include CROB language?
