The use of UK schemes of arrangement (SOA) for
foreign-incorporated companies has been boosted by a decision
to allow German company APCOA Parking to utilise a scheme
despite minimal connection to the country.
Last month’s English court decision held that
an amendment from a German to English governing law clause in
the facilities agreement by majority lender consent was enough
to give the English court jurisdiction to sanction a SOA.
The decision further strengthens the position of the UK as a
restructuring hub, with comparable benefits to –
although lower costs than – the US. "This may be an
appropriate alternative to Chapter 11," said Karl Clowry,
partner at Paul Hastings in London....