In June 2020 the Corporate Insolvency and Governance Act introduced a new restructuring procedure known as the Restructuring Plan. This provides companies in financial distress with a more powerful restructuring tool than has previously existed in the UK insolvency regime.
A Restructuring Plan is an arrangement or compromise between the company and its creditors and/or shareholders which is sanctioned by the Court, to facilitate the rescue of the company.
The company’s creditors and/or shareholders must approve the Restructuring Plan, and they will vote in classes. Each class will be deemed to approve the Restructuring Plan if 75% by value of that class vote in favour. It is also key that dissenting creditors must not be treated unfairly by the proposal.
At Cork Gully our team of experienced Insolvency Practitioners will work with companies who have encountered, or are likely to encounter, financial difficulties that will affect their ability to continue as a going concern. We will work with the company to ensure a Restructuring Plan is formulated that will address the financial difficulties facing the company.