The new UK legislation for companies in financial difficulty represents a fundamental shift in approach to restructuring in Europe and adds an important new tool to the UK restructuring framework. The availability of a plan proposed under the new Part 26A of the Companies Act 2006 (a Restructuring Plan) will undoubtedly change how many distressed companies seek to address their financial difficulties. However, until case law is developed, there will remain considerable uncertainty as to how the Restructuring Plan will work in practice.
Below, Weils Business Finance and Restructuring team provides their key observations on the draft legislation which they expect will be the main focal points when the new law becomes effective.
1. INTRODU…
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