The court held that restructuring plans, introduced by the 2020 Corporate Insolvency and Governance Act(CIGA), are ‘insolvency proceedings’ for the purposes of the Lugano Convention. As the plan fell within the bankruptcy exception in the Convention, the UK court had jurisdiction despite an exclusive jurisdiction clause in favour of the Swiss courts.
- Restructuring plans fall within the bankruptcy exclusion of the Lugano Convention, so recognition outside the UK will need to be achieved through more challenging means such as an application to the relevant foreign court
- Distressed companies should carefully consider matters of jurisdiction and recognition when adopting an appropriate restructuring tool
- Re gategroup Guarantee Ltd [2021]…
Read the full article at: https://www.pinsentmasons.com/out-law/legal-updates/high-court-restructuring-plans-insolvency-proceedings
