First Asian restructure under UK SOA explained

Author: Ashley Lee | Published: 11 Sep 2013
  • Vinashin has become the first Vietnamese SEO to undergo an international restructure;
  • As its loan documents were governed by English law, it used a UK scheme of arrangement. This was the first Asian debtor without a clear UK nexus to use a UK scheme;
  • For the first time, a UK court granted a stay on creditor actions until after the outcome of the scheme of arrangement;
  • More Asian companies are expected to seek restructurings offshore, particularly in the US and now the UK.

Viet Nam Shipbuilding Industry Group (Vinashin) has become the first Asian company to restructure through a UK scheme of arrangement. It also represents the first time a UK court used its discretion to stay proceedings against a debtor so that a scheme could be put forward.